The quantity of loanable funds demanded increases if the real interest rate falls, all other things remaining the same, because the real interest rate
A) determines the cost of living.
B) affects the supply of saving which, in turn, determines the quantity of investment.
C) affects the quantity of saving supplied.
D) is not related to the price of bonds and stocks.
E) is the opportunity cost of investment.
Correct Answer:
Verified
Q1: Other things remaining the same, a--------------------in the
Q2: If there is no Ricardo-Barro effect, a
Q4: Q5: Which of the following factors does NOT Q6: Which of the following represents ownership of Q7: In the loanable funds market, which of Q8: If expectations about future income change, there Q9: If the real interest rate Q10: Ford Motor Corporation is considering purchasing new Q11:
A)rises, the supply
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