-Refer to Figure 8-7

question 105

Multiple Choice

-Refer to Figure 8-7.What is the equilibrium interest rate in the above figure?

• A) 6% because that is where the total supply of funds equals the total demand.
• B) 5% because business and the government want to borrow as much as possible.
• C) 6% because that is where the amount of funds demanded is equal to the amount of funds demanded.
• D) 7% because households refuse to lend enough funds at a lower interest rate.
• E) 5% because households refuse to lend enough funds at a higher interest rate.

---

Definitions:

Automated-Service

A type of service that uses technology to perform tasks without human intervention.

Gas Stations

Retail establishments that sell fuel for motor vehicles and often offer additional services or products such as convenience store items.

Franchisor

An entity that grants the right to use its trademark, business model, and operational system to an individual or company (the franchisee) under agreed-upon terms.

Franchisee

An individual or company that acquires the rights to operate a business under the franchisor's brand and business model.