If the Quantity of Loanable Funds Supplied Exceeds the Quantity

question 76

Multiple Choice

If the quantity of loanable funds supplied exceeds the quantity of loanable funds demanded,

• A)there is a surplus and the interest rate is above the equilibrium level.
• B)there is a surplus and the interest rate is below the equilibrium level.
• C)there is a shortage and the interest rate is above the equilibrium level.
• D)there is a shortage and the interest rate is below the equilibrium level.

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Definitions:

Ginkgo Biloba

A herbal supplement derived from the leaves of the Ginkgo tree, used for cognitive enhancement and circulation improvement.

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A diuretic medication often used to treat high blood pressure and edema by helping the body get rid of excess fluid.