If the real interest rate rises, then the
A) quantity of saving decreases and there is a movement down along the supply of loanable funds curve.
B) quantity of saving increases and there is a movement up along the supply of loanable funds curve.
C) supply of saving increases and the supply of loanable funds curve shifts rightward.
D) supply of saving decreases and the supply of loanable funds curve shifts leftward.
E) demand for investment decreases and the demand for loanable funds curve shifts leftward.
B
You might also like to view...
Saving
A) slows growth because it decreases consumption. B) finances investment which brings capital accumulation. C) has no impact on economic growth. D) is very low in most East Asian nations. E) is important for a country to gain the benefits of international trade.
Which of the following is a feature of models?
A) Models are the same as hypotheses. B) Models help making predictions for the future. C) Models are more complicated than real life phenomena. D) Models are as complex as the phenomenon being studied.
The U.S. has one of the highest unionization rates of all the industrialized countries around the world
a. True b. False Indicate whether the statement is true or false
Sunk costs are irrelevant for decisions about future actions because ______.
a. the money has been spent and cannot be recovered to use again b. the money has not been spent yet, so the amount is not known c. they only affect a firm in the short run, not the long run d. they may or may not be applicable under future conditions