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:

Coefficient Of Elasticity

A measure used in economics to show how much the quantity demanded or supplied of a good responds to a change in its price or income level.

Special Sale

A promotional offer that temporarily reduces the price of items or services to encourage purchases.

Price Range

The spread between the highest and lowest selling price of a good or service in a market over a certain period of time.

Total Revenues

The total amount of money generated by a firm from its sales activities before any expenses are subtracted.