Which of the Following Would Necessarily Increase the Equilibrium Interest

question 173

Multiple Choice

Which of the following would necessarily increase the equilibrium interest rate?

• A)The demand for and the supply of loanable funds shift right.
• B)The demand for and the supply of loanable funds shift left.
• C)The demand for loanable funds shifts right and the supply of loanable funds shifts left.
• D)The demand for loanable funds shifts left and the supply of loanable funds shifts right.

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Definitions:

Production Possibilities Curve

A graphical representation that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.

Competitive Markets

Markets where numerous producers and consumers interact, leading to efficient distribution of goods and services and price determination through supply and demand.

Supply and Demand

A fundamental economic model that describes how prices and quantity of goods and services are determined in a market.

Equilibrium Price

The price at which the quantity of a good or service supplied matches the quantity demanded, causing the market to be in a state of balance.