Question :
81) If a surplus of loanable funds exists in the : 1240409
81) If a surplus of loanable funds exists in the loanable funds market, the real interest rate ________ and the quantity of saving ________.
A) rises; increases
B) rises; decreases
C) falls; increases
D) falls; decreases
E) falls; does not change
82) The equilibrium real interest rate is 5 percent. If the real interest rate is
A) 3 percent, then the supply of loanable funds curve will shift leftward as new savers enter the market.
B) 6 percent, the demand for loanable funds curve will shift rightward as firms enter the market to borrow at the lower rate.
C) 8 percent, there is a surplus of loanable funds.
D) 2 percent, there is a shortage of loanable funds.
E) anything other than 5 percent, the supply of loanable funds curve and/or the demand for loanable funds curve will shift to move the real interest rate to 5 percent.
83) In the loanable funds market, if the real interest rate is higher than the equilibrium real interest rate,
A) there is a shortage of loanable funds.
B) there is a surplus of loanable funds.
C) there is a surplus of investment.
D) the demand for loanable funds curve shifts rightward to restore the equilibrium.
E) the demand for loanable funds curve shifts leftward to restore the equilibrium.
84) At the current interest rate, the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded. Therefore
A) the real interest rate is below the equilibrium level.
B) the real interest rate is above the equilibrium level.
C) equilibrium will not be achieved until something shifts the supply of loanable funds curve leftward.
D) equilibrium will not be achieved until something shifts the demand for loanable funds curve rightward.
E) equilibrium will not be achieved until something shifts the supply of loanable funds curve rightward.
85) When the real interest rate ________ the equilibrium real interest rate, there is a ________ of loanable funds and the real interest rate ________.
A) exceeds; surplus ; falls
B) is less than; surplus; rises
C) exceeds; shortage; rises
D) is less than; shortage; falls
E) exceeds; surplus; rises
86) The figure above shows the loanable funds market. The equilibrium real interest rate is ________, and the equilibrium quantity of loanable funds is ________.
A) 6 percent; $2.0 trillion
B) 4 percent; $2.5 trillion
C) 8 percent; $1.5 trillion
D) 0 percent; $3.5 trillion
E) 4 percent; $1.5 trillion
87) The figure above shows the loanable funds market. If the real interest rate is 2 percent, then
A) there will be government intervention in the market to make sure there is no credit crisis.
B) there will be a leftward shift in the demand for loanable funds curve.
C) there is a surplus in the loanable funds market.
D) there is a shortage in the loanable funds market
E) the demand for loanable funds curve will shift rightward.
88) The figure above shows the loanable funds market. If the real interest rate is 10 percent, then
A) there is a shortage in the loanable funds market.
B) there is a surplus in the loanable funds market.
C) the interest rate must increase.
D) the government must intervene in order to prevent a credit crisis.
E) savers will exit the market because of the high opportunity cost of saving.
89) The figure above shows the loanable funds market. The equilibrium real interest rate is ________ percent, and the equilibrium quantity of loanable funds is ________.
A) 4; $1.8 trillion
B) 6; $1.6 trillion
C) 8; $1.4 trillion
D) 4; $1.4 trillion
E) 8; $1.8 trillion
90) The figure above shows the loanable funds market. At an interest rate of
A) 8 percent, there is a surplus of loanable funds.
B) 8 percent, the quantity demanded of loanable funds exceeds the quantity supplied.
C) 4 percent, the quantity supplied of loanable funds equals $18 trillion.
D) 6 percent, the quantity demanded of loanable funds equals $14 trillion.
E) 4 percent, there is a surplus of loanable funds.
91) The figure above shows the loanable funds market. At an interest rate of
A) 4 percent, there is a surplus of loanable funds.
B) 4 percent, there is a shortage of loanable funds.
C) 8 percent, the quantity of loanable funds supplied is $14 trillion.
D) 8 percent, the quantity demanded of loanable funds is $18 trillion.
E) 6 percent, savers will exit the market because the reward to saving is too low.
