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If the Interest Rate Is Below Equilibrium,then the Quantity of Interest-Bearing

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If the interest rate is below equilibrium,then the quantity of interest-bearing financial assets demanded is less than the quantity supplied,so people selling interest-bearing financial assets have to offer higher interest rates to get people to buy them,thus raising interest rates back to the equilibrium level.


Definitions:

Utility

The satisfaction or benefit a consumer derives from consuming a product or service.

Textile Industry

A sector engaged in the production of yarn, cloth, and the subsequent design or manufacture of clothing and their distribution.

Athletic Performance

The level of achievement and proficiency demonstrated by an athlete or sports participant in competitive settings.

Utility

In economics, the satisfaction or benefit derived from the consumption of goods or services.

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