If the Quantity of Loanable Funds Demanded Exceeds the Quantity

question 191

Multiple Choice

If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied,

• A)there is a surplus and the interest rate is above the equilibrium level.
• B)there is a surplus and the interest rate is below the equilibrium level.
• C)there is a shortage and the interest rate is above the equilibrium level.
• D)there is a shortage and the interest rate is below the equilibrium level.

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Definitions:

Formal Channels

Official paths for communication within an organization, typically outlined in its structure and procedures.

Chain of Command

A hierarchical structure of authority in an organization, where orders flow downward and accountability flows upward.

Supportive Communication Principles

involve guidelines for interacting in ways that create a positive environment, fostering open, constructive, and empathetic dialogue.

Communication Barriers

Obstacles that impede the flow of information between communicators, which can lead to misunderstandings or failure to convey messages effectively.