Refer to the Following Graph to Answer the Following Questions

question 139

Multiple Choice

Refer to the following graph to answer the following questions:
-Assuming the figure represents the market for loanable funds,it would be true that

• A) the vertical axis represents the amount of savings,and the horizontal axis represents the amount of borrowing.
• B) the vertical axis represents the interest rate,and the distance between points C and D represents the surplus of loanable funds at interest rate A.
• C) the horizontal axis represents the interest rate,and the distance between points C and D represents the shortage of loanable funds.
• D) the vertical axis represents the interest rate,and the distance between points C and D represents the shortage of loanable funds at interest rate A.
• E) line 1 represents the interest rate,and line 2 represents the quantity of savings.

Explain the effects of interest rates on the economy, including the role of usury laws.

Understand the relationship between supply, demand, and pricing in various markets, including real estate and loanable funds.

Familiarize with the concept of economic profits versus accounting profits.

Assess the impact of usury laws on the availability and cost of loanable funds.

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Definitions:

Relational Operator

An operator used in programming languages to compare two values or expressions, such as ==, !=, >, <, >=, <=.

Logical Operator

A symbol or word used in programming to connect two or more conditions or expressions, producing a true or false outcome based on logic.

Expression

In programming, it is a construct that computes or evaluates to a value.

Relational Operator

Operators used in programming languages to compare two values or expressions, resulting in a Boolean value indicating the relationship (e.g., equals, greater than, less than).