Use the Following to Answer Questions

question 376

Multiple Choice

Use the following to answer questions:
-(Figure: Loanable Funds Market II) Use Figure: Loanable Funds Market II.If the interest rate is lower than 8%,the quantity supplied of loanable funds will be _____ the quantity of loanable funds demanded.

• A) greater than
• B) less than
• C) equal to
• D) The quantity supplied of loanable funds cannot be determined from the information provided.

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Definitions:

Foreclosures

The legal process through which a lender takes control of a property from the borrower due to failure to make the required mortgage payments.

December 2007

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Great Depression

A severe worldwide economic depression that took place during the 1930s, starting in the United States, marked by significant declines in industrial production and employment.