If the Quantity of Loanable Funds Supplied Is Greater Than

question 140

Multiple Choice

If the quantity of loanable funds supplied is greater than the quantity demanded, which of the following best describes the consequences?

• A)There is a shortage of loanable funds, and the interest rate will fall.
• B)There is a shortage of loanable funds, and the interest rate will rise.
• C)There is a surplus of loanable funds, and the interest rate will fall.
• D)There is a surplus of loanable funds, and the interest rate will rise.

---

Definitions:

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, which is illegal in most countries and can cause severe physical and psychological addiction.

Mercury

Mercury is a chemical element with the symbol Hg and atomic number 80, known for being the only metal that is liquid at standard conditions for temperature and pressure.

Prenatal Exposure

Contact or absorption of substances by the fetus when the mother consumes or is exposed to drugs, chemicals, or environmental hazards during pregnancy.

Fetal Exposure

The impact of environmental factors or substances on a fetus during pregnancy, which may affect development or cause birth defects.