If the supply of loanable funds increases, what is the result for the equilibrium of the loanable funds market?
A) A surplus of loanable funds would push interest rates down and increase the equilibrium quantity of loanable funds.
B) A surplus of loanable funds would push interest rates up and decrease the equilibrium quantity of loanable funds.
C) A shortage of loanable funds would push interest rates down and increase the equilibrium quantity of loanable funds.
D) A shortage of loanable funds would push interest rates up and decrease the equilibrium quantity of loanable funds.
A
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Refer to Figure 3-4. If the price is $10
A) there would be a surplus of 600 units. B) there would be a surplus of 200 units. C) there would be a shortage of 200 units. D) there would be a shortage of 600 units.
The U.S. Social Security tax is an example of a
A) progressive tax. B) proportional tax. C) premium tax. D) regressive tax.
A notable and unique feature of the colonial monetary system was
a. the use of minted silver coins. b. the circulation of commodities as money. c. the use of a widely accepted paper currency. d. the development of checking accounts issued by private commercial banks.
The division of labor usually refers to splitting
a. the three coordination decisions among different sets of planners. b. the parts of a complex task among different workers. c. the production of consumption goods and capital goods among different workers. d. political leaders into radical and conservative camps each year.