When the Real Interest Rate ________ the Equilibrium Real Interest

question 38

Multiple Choice

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

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

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Definitions:

Primary Qualities

In philosophy, qualities that are inherent to an object and can be objectively measured, such as shape, size, and motion.

Olfactory Receptors

Specialized sensory cells located in the nasal cavity responsible for the detection of odor molecules, playing a critical role in the sense of smell.

Low-Frequency

Relating to sound waves with a low pitch or electromagnetic waves with a low rate of oscillation or frequency.

High-Frequency

refers to occurrences or phenomena that happen at a fast or rapid pace, often used in the context of signals, trading, or communication.