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The Demand Curve Above the Equilibrium Point Represents ______ Demands

question 264

Multiple Choice

The demand curve above the equilibrium point represents ______ demands. The demand curve below the equilibrium point represents ______ demands.


Definitions:

Present Value

The value at present of future monetary sums or cash flow streams, determined by applying a given rate of return.

Interest

The payment made for the use of (borrowed) money.

Supply of Loanable Funds

The total amount of funds available for borrowing in the economy, determined by savings and influenced by interest rates.

Perfectly Elastic

Describes a situation in demand or supply where quantity changes by an infinite amount in response to any change in price.

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