If the Quantity of Loanable Funds Supplied Is Less Than

question 288

Multiple Choice

If the quantity of loanable funds supplied is less than the quantity demanded, then

• 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.

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Definitions:

Mean

A measure of central tendency, calculated as the sum of all values in a dataset divided by the number of values.

Geometric Mean

The average of a set of numbers or quantities, computed by taking the nth root of the product of the numbers.

Mode

The value that appears most frequently in a data set, a measure of central tendency.

Variance

A measure of the dispersion or spread of a set of data points, calculated as the average of the squared differences from the mean.