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:

Transit

The process or period of moving goods or people from one place to another.

FIFO Method

The First-In, First-Out method is an inventory valuation technique where the costs of the earliest goods purchased are the first to be recognized in cost of goods sold.

Earliest Units

The first units produced or acquired in a period, which are often accounted for differently in inventory costing methods.

Cost Of Goods Sold

The total cost directly associated with producing goods sold by a business, including materials and labor.