In a Credit Crunch

question 199

Multiple Choice

In a credit crunch:

• A)interest rates are so low that savers decrease the quantity of available loanable funds.
• B)borrowers are forced to pay very high interest rates or may not be able to borrow at all.
• C)unemployment is usually very low and the growth rate of output is very high.
• D)the spread becomes negative.

---

Definitions:

Concentration Effect

The impact that changing the concentration of reactants has on the rate of a chemical reaction.

Reaction Speed

The rate at which reactants are converted into products in a chemical reaction, influenced by factors like temperature, concentration, and presence of catalysts.

AgNO3

Silver nitrate, an inorganic compound with antiseptic properties, used in medical applications and analytical chemistry.

Increased Speed

A situation where the velocity or pace at which an object or process operates is raised.