If There Is Surplus of Loanable Funds, Then

question 112

Multiple Choice

If there is surplus of loanable funds, then

• 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:

Estate Assets

These are assets owned by a deceased person's estate, including real estate, bank accounts, stock, and personal property.

Claims

Financial demands or rights to payment held by creditors, policyholders, or other entities arising from contracts, law, or legal action.

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The act of managing or supervising the operations and policies of an organization.