Which of the Following Could Explain an Increase in the Equilibrium

question 49

Multiple Choice

Which of the following could explain an increase in the equilibrium interest rate and a decrease in the equilibrium quantity of loanable funds?

• A)The demand for loanable funds shifted right.
• B)The demand for loanable funds shifted left.
• C)The supply of loanable funds shifted right.
• D)The supply of loanable funds shifted left.

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Definitions:

Consideration

The value (such as money, services, or goods) that is promised to be transferred in a contract, creating a binding obligation.

Merchant Customer

A consumer who has a commercial relationship with a business or merchant, typically involving the purchase of goods or services.

Dispatch

The act of sending something or someone to a specific destination or for a certain purpose.

Acceptance

The act of agreeing to receive something offered or the acknowledgment of a new contractual proposal.