A real interest rate that causes the quantity of saving supplied to be equal to the quantity of saving (or investment)demanded is an example of the:
A)scarcity principle.
B)principle of comparative advantage.
C)equilibrium principle.
D)principle of increasing opportunity cost.

Question

Quizplus · Accepted Answer

Equilibrium in financial markets occurs at the intersection of the supply of savings and demand for investment curves.

A Real Interest Rate That Causes the Quantity of Saving