When the Real Interest Rate ________ the Equilibrium Real Interest

question 34

Multiple Choice

When the real interest rate ________ the equilibrium real interest rate,there is a ________ of loanable funds and the real interest rate ________.

• A)is less than;shortage;falls
• B)is less than;surplus;rises
• C)is less than;shortage;rises
• D)exceeds;surplus;rises
• E)exceeds;shortage;rises

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Definitions:

Rhythm Method

A form of natural family planning based on tracking the menstrual cycle to estimate fertile and infertile periods.

Menstrual Cycle

The regular, natural change that occurs in the female reproductive system that makes pregnancy possible, typically lasting about 28 days.

Ovulation

The phase in the menstrual cycle when an ovary releases an egg, marking the time when a woman is most fertile.

Cervical Cap

A silicon, cup-shaped device that is inserted into the vagina to prevent pregnancy.