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-In Exhibit Q-7, the Equilibrium Rate of Interest Is _____

Question 147

Multiple Choice

  -In Exhibit Q-7, the equilibrium rate of interest is _____ because at that rate __________. A)  10 percent; the quantity supplied equals the quantity demanded B)  6 percent; demanders are encouraged to borrow and thus invest the most C)  14 percent; suppliers are encouraged to save the most D)  10 percent; firms maximize their profit E)  unknown; not enough information is given
-In Exhibit Q-7, the equilibrium rate of interest is _____ because at that rate __________.


A) 10 percent; the quantity supplied equals the quantity demanded
B) 6 percent; demanders are encouraged to borrow and thus invest the most
C) 14 percent; suppliers are encouraged to save the most
D) 10 percent; firms maximize their profit
E) unknown; not enough information is given

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