If the Quantity of Loanable Funds Demanded Exceeds the Quantity

question 191

Multiple Choice

If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied,

• A)there is a surplus and the interest rate is above the equilibrium level.
• B)there is a surplus and the interest rate is below the equilibrium level.
• C)there is a shortage and the interest rate is above the equilibrium level.
• D)there is a shortage and the interest rate is below the equilibrium level.

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Definitions:

Levels of Processing

A theory in cognitive psychology proposing that deeper levels of analysis produce more durable memory traces.

Implicit Memories

Memories that are not consciously recalled but influence behaviors and skills, also known as procedural memories.

Amygdala

A part of the brain's limbic system involved in emotion regulation, particularly in processing and responding to fear and pleasure.

Cerebellum

A major structure of the hindbrain that is involved in motor control, coordination, precision, and timing of movement.