In the Market for Loanable Funds,the Equilibrium Interest Rate Is

question 78

Multiple Choice

In the market for loanable funds,the equilibrium interest rate is determined by the intersection of:

• A)the downward-sloping supply curve for loanable funds and the upward-sloping demand curve for loanable funds.
• B)the upward-sloping supply curve for loanable funds and the downward-sloping demand curve for loanable funds.
• C)the downward-sloping supply curve of loanable funds and the horizontal demand curve for loanable funds.
• D)the downward-sloping supply curve of loanable funds and the vertical demand curve for loanable funds.
• E)the upward-sloping supply curve for loanable funds and the horizontal demand curve for loanable funds.

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Definitions:

LIFO

Last In, First Out, an inventory valuation method where the most recently produced or acquired items are sold first, affecting the cost of goods sold and inventory value.

FIFO

"First In, First Out," a method of inventory valuation where the earliest acquired goods are sold first.

Rising Prices

A situation where the general level of prices for goods and services in an economy increases over a period of time.

Inventory Method

An accounting approach used to value and manage inventory, such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out).