What Would Make the Equilibrium Interest Rate Increase and the Equilibrium

question 5

Multiple Choice

What would make the equilibrium interest rate increase and the equilibrium quantity of funds decrease?

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

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Definitions:

Demand Estimation

The process of determining the expected demand for a product or service, based on historical data, market trends, and statistical models.

Level Scheduling

A production strategy aiming to maintain a consistent production rate or workforce level over time, despite fluctuating demand.

Hire/Layoff Workers

Hiring and laying off workers are human resources management actions involving the appointment of new staff members and the dismissal of existing employees, respectively, usually based on the company’s current demand and financial situation.

Aggregate Planning

The method of creating, examining, and keeping an initial, rough plan of an organization's total activities.