The real interest rate bringing the supply of saving equal to the demand for saving is an example of the:
A) cost-benefit principle
B) principle of increasing opportunity cost.
C) equilibrium principle.
D) scarcity principle.

Question

Quizplus · Accepted Answer

In financial markets, the price for saving is the real interest rate. Equilibrium in financial markets occurs at the intersection of the supply of savings and demand for investment curves.

The Real Interest Rate Bringing the Supply of Saving Equal