If There Is a Surplus of Loanable Funds, What Best

question 182

Multiple Choice

If there is a surplus of loanable funds, what best describes the difference?

• A) The quantity demanded is less than the quantity supplied, and the interest rate will rise.
• B) The quantity demanded is greater than the quantity supplied, and the interest rate will fall.
• C) The quantity demanded is less than the quantity supplied, and the excess is the net capital outflow
• D) The quantity demanded is less than the quantity supplied, and the shortage is the net capital inflow.

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Definitions:

Finished Goods Inventory

Refers to the inventory of goods that are completed and ready for sale.

Cost of Goods Manufactured

The total expense incurred in manufacturing goods, including materials, labor, and overhead, up to the point of completion.

Raw Materials

Primary components used to produce or fabricate products.

Direct Labor

The wages and expenses directly associated with workers who physically produce goods or provide services.