If There Is a Surplus of Loanable Funds, Which of the Following

question 43

Multiple Choice

If there is a surplus of loanable funds, which of the following best describes the consequences?

• A)The quantity demanded is greater than the quantity supplied, and the interest rate will rise.
• B)The quantity demanded is greater than the quantity supplied, and the interest rate will fall
• C)The quantity demanded is less than the quantity supplied, and the interest rate will rise.
• D)The quantity demanded is less than the quantity supplied, and the interest rate will fall.

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Definitions:

Connotations

The array of emotions, associations, or additional meanings that a word or phrase evokes, beyond its literal definition.

Informant

A person who provides valuable information or intelligence, often for research or investigative purposes.

Utilitarianism

An ethical theory that emphasizes the greatest good for the greatest number, focusing on outcomes rather than rules or duties.

Categorical Imperative

A central philosophical concept in the ethics of Immanuel Kant, stating an action is morally right if it can be universally applied.