Interest rate equilibrium is increased and supply curve of funds shifts to left or upward is result of
A. increase in future value
B. decrease in future value
C. increase in total wealth
D. decrease in total wealth
Answer: Option D
Solution (By Examveda Team)
Interest rate equilibrium is increased and supply curve of funds shifts to left or upward is result of decrease in total wealth. The equilibrium interest rate is the rate at which the quantity of money demanded is equal to the quantity of money supplied. The Federal Reserve can alter the equilibrium interest rate by adjusting the supply of money. The demand for money and supply of money can be graphed to determine the equilibrium interest rate.This Question Belongs to Management >> International Finance And Treasury
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