Question

19. If equilibrium for interest rate is 8% and a bank is offering loans at 5% then what will occur based on the supply and demand model?

Group of answer choices

A. there will be a surplus of loanable funds

B. there will be a shortage of loanable funds

C. the demand for loanable funds will equal the supply of loanable funds

D. the demand for loanable funds will be less than the supply of loanable funds

13. Which of the following best describes what happens if equilibrium is at $57 and a price moves from $68 to $51?

Group of answer choices

A. surplus to a smaller surplus

B. shortage to a smaller shortage

C. shortage to a surplus

D. surplus to a shortage

10. Which of the following is a positive economic statement?

Group of answer choices

A. The current unemployment rate is too high

B. The current unemployment rate is 4.5%

C. It is the job of the free market to lower the unemployment rate

D. It is the job of the government to lower the unemployment rate

5. If domestic economic production in Brazil was $100 in 2012 then how much of that was exported?

Group of answer choices

A. $28.30

B. $12.60

C. $51.10

D. 7.70

Answer 1

Question 1

The equilibrium interest rate is 8%.

The bank is offering loans at 5%.

This means bank is offering an interest rate that is lower than the equilibrium interest rate.

When the current interest rate is lower than the equilibrium interest rate then, in that case, quanity demanded of loanable funds is greater than the quantity supplied of the loanable funds.

When quanity demanded of loanable funds is greater than the quantity supplied of the loanable funds then there is a shortage of loanable funds.

Thus,

In this case, there will be a shortage of loanable funds.

Hence, the correct answer is the option (B).

Note -: As per the Chegg Answering Policy, when more than 1 question is posted then, in that case, only 1st posted question is answered with complete explanation.