If There Is a Surplus in the Market for Loanable

question 39

Multiple Choice

If there is a surplus in the market for loanable funds,the resulting change in the real interest rate

• A)reduces both the quantity of loanable funds supplied and the quantity of loanable funds demanded.
• B)reduces the quantity of loanable funds supplied and raises the quantity of loanable funds demanded
• C)raises both the quantity of loanable funds supplied and the quantity of loanable funds demanded.
• D)raises the quantity of loanable funds supplied and reduces the quantity of loanable funds demanded.

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Definitions:

Differentiation

The process of deciding how to divide the work in an organization.

Positive Feelings

Emotions and attitudes that are beneficial, uplifting, and contribute to a sense of well-being and happiness.

Compulsive

Describing a behavior that is driven by an irresistible urge, often against an individual's conscious wishes.

Physically

Pertaining to the body or the physical aspects of existence, as opposed to mental or emotional components.