Which of the Following Could Explain an Increase in the Interest

question 180

Multiple Choice

Which of the following could explain an increase in the interest rate and the equilibrium quantity of loanable funds?

• A)The demand for loanable funds shifted rightward.
• B)The demand for loanable funds shifted leftward.
• C)The supply of loanable funds shifted rightward.
• D)The supply of loanable funds shifted leftward.

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Definitions:

Socially Optimal

Pertains to a condition where resources are allocated in the most efficient manner from the perspective of society as a whole.

Pollution

The presence or introduction of harmful substances or contaminants into the natural environment, causing adverse effects.

Emissions Standard

Regulations that set limits on the amount of pollutants that can be emitted from sources like vehicles and factories.

Pollution

The contamination of the environment by harmful or poisonous substances, leading to detrimental effects on living organisms and the natural habitat.