Investment and R&D decisions by firms are based on nominal interest rates, not real interest.
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Q26: When the inflation rate is 4 percent
Q27: Interest represents a cost to the borrower,
Q28: A decrease in the supply of loanable
Q29: If the expected rates of return on
Q30: An increase in the expected rates of
Q32: If people became thriftier and saved more,
Q33: The quantity of loanable funds supplied is
Q34: For a given future value, the higher
Q35: Usury laws will result in a shortage
Q36: A firm will undertake investments as long
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