The Equilibrium in the Market for Loanable Funds Is

question 105

Multiple Choice

The equilibrium in the market for loanable funds is:

• A) at the interest rate set by the Fed.
• B) at the price at which the quantity supplied is slightly greater than quantity demanded.
• C) where the amount being borrowed and the amount being saved is the same.
• D) where the amount being saved is enough for banks to cover required reserves.

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Definitions:

Better-Than-Average Effect

A cognitive bias where individuals overestimate their abilities, qualities, or positive attributes compared to others.

Personal Responsibility

The concept of being accountable for one's actions and accepting the consequences that come with them; underlines the importance of individual action in shaping one's life and society.

Secure Self-Esteem

A form of self-esteem that is stable and resilient to external conditions, reflecting a true and positive self-evaluation.

Accepts Himself

The recognition and acknowledgment of oneself with all strengths, weaknesses, successes, and failures.