If There Is Surplus of Loanable Funds, What Is Most

question 186

Multiple Choice

If there is surplus of loanable funds, what is most likely to happen?

• A) The supply for loanable funds shifts right and the demand shifts left.
• B) The supply for loanable funds shifts left and the demand shifts right.
• C) Neither curve shifts, but the quantity of loanable funds supplied increases and the quantity demanded decreases as the interest rate rises to equilibrium.
• D) Neither curve shifts, but the quantity of loanable funds supplied decreases and the quantity demanded increases as the interest rate falls to equilibrium.

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Definitions:

A Priori Method

An approach that derives conclusions through logical reasoning rather than from empirical observation, often used in philosophy and theoretical sciences.

Positivist Perspective

A philosophical approach that emphasizes observable, scientific facts as the only credible source of knowledge.

Same Outcome

Refers to the scenario where different methods or processes yield identical results or conclusions.

Evidence-Based

Practices or decisions that are grounded in systematically gathered evidence from research and data rather than anecdote or solely personal experience.