If the Government Imposes an Interest Rate Ceiling Below the Equilibrium

question 12

Multiple Choice

If the government imposes an interest rate ceiling below the equilibrium interest rate in the loanable funds market,then:

• A) the quantity of savings supplied will be less than the quantity of loanable funds demanded.
• B) the quantity of savings supplied will be more than the quantity of loanable funds demanded.
• C) the quantity of savings supplied will be equal to the quantity of loanable funds demanded.
• D) the quantity of savings supplied and the quantity of loanable funds demanded will not be affected.

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Definitions:

Recovery Team

A group of healthcare professionals and specialists dedicated to helping patients rehabilitate and recover from illness, injury, or surgery.

Crutch Palsy

A condition that involves nerve damage or paralysis resulting from the improper or prolonged use of crutches.

Axillary Crutches

Mobility aids used to transfer weight from the legs to the upper body, typically positioned under the armpits.

Supplies Account

An account used to track the cost of consumable items and minor equipment used within a business operation.