If There Is a Surplus of Loanable Funds,then

question 91

Multiple Choice

If there is a surplus of loanable funds,then

• A)the quantity demanded is greater than the quantity supplied and the interest rate will rise.
• B)the quantity demanded is greater than the quantity supplied and the interest rate will fall.
• C)the quantity supplied is greater than the quantity demanded and the interest rate will rise.
• D)the quantity supplied is greater than the quantity demanded and the interest rate will fall.

---

Definitions:

Sole Proprietorship

A company that is owned and run by just one person, with no legal separation between the owner and the business itself.

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Discretionary Income

The amount of an individual's income left for spending, investing, or saving after taxes and basic necessities have been paid.

Free Market

An economic system in which prices are determined by unrestricted competition between privately owned businesses.