The Equilibrium Interest Rate

question 9

Multiple Choice

The equilibrium interest rate

• A) equates the aggregate demand for funds with the aggregate supply of loanable funds.
• B) equates the elasticity of the aggregate demand and supply for loanable funds.
• C) decreases as the aggregate supply of loanable funds decreases.
• D) increases as the aggregate demand for loanable funds decreases.

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Definitions:

Dendrite

The branched projections of a neuron that act to conduct the electrochemical stimulation received from other neural cells to the cell body, or soma.

Neuron

A nerve cell that is the basic building block of the nervous system, responsible for transmitting information throughout the body.

Terminal Buttons

The small knoblike structures at the end of an axon that release neurotransmitters to send signals to other neurons.

Neurotransmitters

Chemical substances in the nervous system that transmit signals across a synapse from one neuron to another, influencing both mental and physical functions.