If There Is a Surplus in the U

question 75

Multiple Choice

If there is a surplus in the U.S.loanable funds market,then the interest rate

• A)rises,which increases quantity of loanable funds demanded.
• B)rises,which decreases the quantity of loanable funds demanded.
• C)falls,which increases the quantity of loanable funds demanded.
• D)falls,which decreases the quantity of loanable funds demanded.

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Definitions:

Fixed-price Policy

A pricing strategy where the price of a product or service is set and not subject to change based on market fluctuations.

Customary Pricing

Pricing strategy that is based on what is traditionally expected or accepted within a specific industry or by consumers.

Dynamic Pricing Policy

A pricing strategy where prices are variable and can change in response to market demand or other external factors.

Loss-leader Pricing

A marketing strategy where a product is sold at a loss to attract customers in the hope they will make additional purchases.