The real interest rate is--------------------related to the supply of loanable funds because--------------------
A) negatively; the opportunity cost of consumption expenditure increases as the real interest rate rises
B) positively; people are motivated to increase their consumption expenditure as the real interest rate rises
C) negatively; people are motivated to save more as the real interest rate rises
D) positively; the opportunity cost of consumption expenditure increases as the real interest rate rises
E) None of the above answers are correct.
Correct Answer:
Verified
Q115: The tendency for higher government budget deficits
Q116: Q117: What does the Ricardo-Barro Effect predict? Q118: When the real interest rate --------------------the equilibrium Q119: An increase in the expected profit from Q121: The supply of loanable funds schedule shows Q122: Which of the following are typically financed
A)Government budget
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