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Salsk061 [2.6K]
3 years ago
10

If there is a surplus in the market for loanable funds, the resulting change in the real interest rate a. raises the quantity of

loanable funds supplied and reduces the quantity of loanable funds demanded. b. reduces the quantity of loanable funds supplied and raises the quantity of loanable funds demanded c. raises both the quantity of loanable funds supplied and the quantity of loanable funds demanded. d. reduces both the quantity of loanable funds supplied and the quantity of loanable funds demanded.
Business
1 answer:
Arlecino [84]3 years ago
7 0

Answer:

The correct answer is option b.

Explanation:

A surplus in the market for loanable funds is likely to cause a fall in the interest rate. At lower interest rate, people who need credit will demand more loanable funds. While the suppliers will provide less funds. So, the demand of loanable funds will increase and the supply will decrease.

This process will continue till excess demand will cause the interest rate to rise. The initial equilibrium will be restored eventually.

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human settlement and migration, the gathering of raw materials, and the manufacturing of finished products.
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2 years ago
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The inventory cost for burlington is $18,278.

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8 months ago
To test their theories, economists usually have to:____.
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Confront theories predictions with evidence

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To test economic theories, economists would observe real behavior and test it with data from the real world. Which would in turn provide evidence based on what is being tested. Confronting theories predictions with evidence is a pointer to the fact that economic theories are verifiable and their validity can be tested.

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You are comparing two investment options. The cost to invest in either option is the same today. Both options will provide you w
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Option A is the better choice of the two given any positive rate of return.

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A fixed exchange rate is one that​ _______. A fixed exchange rate is achieved​ _______.
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Answer: Filling the blanks, we get:

A fixed exchange rate is one that​ is set by a country's central bank. A fixed exchange rate is achieved​ by the intervention of the central bank in the area of foreign exchange.

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