Refer to the Following Graph to Answer the Following Questions

question 32

Multiple Choice

Refer to the following graph to answer the following questions:
-Assuming the figure represents the market for loanable funds,and that point C represents $40 million and point D represents $70 million,then it would be true that

• A) at interest rate A,the market is in equilibrium.
• B) at interest rate A,there is a surplus of $30 million of loanable funds.
• C) at interest rate A,there is a shortage of $30 million of loanable funds.
• D) because there is a disequilibrium at interest rate A,interest rates must fall.
• E) the interest rate represented by A must be greater than that represented by B.

---

Definitions:

Physical Units Method

The Physical Units Method is a technique used in process costing that allocates costs based on the number of units produced, disregarding the varying production stages or levels of completion.

Dairy Production

The process of managing and producing milk and milk-based products, often from cows or goats.

Split-Off Point

The stage in a production process where joint products can be recognized as separate products, capable of being sold independently.

Joint Manufacturing Process

A production process where two or more products are produced simultaneously from the same raw materials or inputs.