Question

1. The equilibrium rate of interest is

1. Equivalent to the profit rate.
2. Fixed by law in the United States.
3. Determined by the demand and supply of loanable funds.
4. Equal to the value of a bond or a stock.
5. The rate that ensures that households and businesses can borrow all the need.

Answer 1

The profit rate is different from the interest rate because the profit rate is determined by the sales and cost.

the equilibrium rate of interest is not fixed by law because it is flexible according to the the Federal Reserve.

the interest rate is not equal to the value of a bond or straw and the value of the bond of stock depends on the price

Rate of interest is not the rate at which all the households in businesses in borrow because it depends on the credit worth

Therefore (a,b,d,e) are wrong

Because it can be mentioned that the equilibrium rate of interest depends on supply and demand of loanable funds the equilibrium interest rate is when the demand and supply of loanable funds meet and that's the reason why

(C) is the answer to this question