Use the Following to Answer Questions

question 225

Multiple Choice

Use the following to answer questions
Figure: Market for Loanable Funds

-(Figure: Market for Loanable Funds) Equilibrium in this market for loanable funds occurs when the quantity of loanable funds is:

• A) $100 million.
• B) $150 million.
• C) $200 million.
• D) more than $200 million.

---

Definitions:

Objective Function

A mathematical function used in optimization to represent the goal that needs to be achieved, often minimizing or maximizing some quantity.

Linear Programming

A mathematical method for determining the best outcome (such as maximum profit or lowest cost) in a given mathematical model for some list of requirements represented as linear relationships.

Objective Function

A mathematical function used in decision-making processes, often in optimization, representing the goal that needs to be achieved.

Constraints

Restrictions or limitations in decision-making processes or in the optimization of systems, such as resource limits or production capacities.