Other things the same, a lower real interest rate decreases the quantity of
a. loanable funds demanded.
b. loanable funds supplied.
c. domestic investment.
d. net capital outflow.
b
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The real costs of inflation to society include:
A. an increase in the general level of prices. B. higher relative prices. C. lost purchasing power of income. D. interference with long-term planning.
What is the price elasticity of demand? In terms of percentage changes, what is its formula?
What will be an ideal response?
The price elasticity of demand for a good or service is determined primarily by the
Figure 9-3
?
In Figure 9-3, at $3,000 billion GDP,
A. inventories will be falling, signaling businesses to decrease production. B. inventories will be falling, signaling businesses to increase production. C. planned saving increases planned investment. D. inventories will be accumulating, signaling businesses to increase production.