If the Quantity of Loanable Funds Supplied Is Greater Than

question 63

Multiple Choice

If the quantity of loanable funds supplied is greater than the quantity demanded, what best describes the difference?

• A) There is a surplus of loanable funds, and the interest rate will fall.
• B) There is a shortage of loanable funds, and the interest rate will rise.
• C) There is a surplus of loanable funds that is used to buy foreign assets.
• D) There is a shortage of loanable funds that is used to buy foreign assets.

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Definitions:

Diffuse

To spread or scatter broadly, often used in the context of light, ideas, or substances.

Innovations

are new ideas, devices, or methods that mark a departure from traditional ways, often resulting in improved processes or products.

Main Findings

The most significant results or conclusions that come from research or analysis.

Richard Walton

A notable figure in the field of industrial relations, known for his contributions to improving workplace relations and developing conflict resolution strategies.