Which of the Following Could Explain a Decrease in the Equilibrium

question 108

Multiple Choice

Which of the following could explain a decrease in the equilibrium interest rate and in 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:

Graphic Form

A method of presenting information, data, or financial figures using visual elements such as charts, graphs, and diagrams.

Cost Behavior

The way in which a cost changes in relation to changes in activity levels, categorized into fixed, variable, and mixed costs.

Margin Of Safety

A figure that indicates the possible decrease in sales that may occur before an operating loss results; may be expressed in terms of sales dollars, sales units, or percent of current sales.

Unit Selling Price

The price at which a single unit of a product or service is sold, not accounting for discounts or modifications.