Which of the Following Would Make the Equilibrium Real Interest

question 36

Multiple Choice

Which of the following would make the equilibrium real interest rate decrease and the equilibrium quantity of loanable funds increase?

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

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Definitions:

Division of Labor

The allocation of different tasks to different people or groups in a society, aimed at increasing efficiency and productivity in the production process.

Collective Conscious

An aggregation of mutual convictions, notions, and ethical positions that function as a consolidating power within a community.

Mechanical Societies

Term used by Émile Durkheim to describe simple, traditional societies connected by similarities and communal bonds rather than complex division of labor.

Organic Societies

Refers to social systems perceived as living organisms, where different parts work together harmoniously, often used to describe pre-modern societies.