If There Is a Shortage of Loanable Funds,then

question 126

Multiple Choice

If there is a shortage of loanable funds,then

• A)the demand for loanable funds will shift right so the real interest rate rises.
• B)the supply of loanable funds will shift left so the real interest rate falls.
• C)there will be no shifts of the curves,but the real interest rate rises.
• D)there will be no shifts of the curves,but the real interest rate falls.

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Definitions:

Direct Labour Hour

A measure of labor directly involved in manufacturing or production, calculated by the amount of time workers spend on specific tasks.

Fixed Overhead

Costs that do not change with the level of production or sales activities, such as rent, salaries, and insurance.

Budget Variance

The difference between the budgeted or planned amounts and the actual amounts incurred.

Standard Cost

A predetermined cost of manufacturing a single unit or a number of product units during a specific period under normal conditions.