
-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
Correct Answer:
Verified
Q142: The economy's supply of loanable funds is
A)
Q143: The loanable funds market is in equilibrium
Q144: In lesser-developed countries (LDCs), interest rates are
Q145: Some argue that "financing an investment with
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