An Increase in the Real Interest

question 35

Multiple Choice

An increase in the real interest

• A) increases savings for both borrowers and lenders.
• B) increases savings for borrowers, but has an uncertain effect on the savings of lenders.
• C) increases savings for lenders, but has an uncertain effect on the savings of borrowers.
• D) has an uncertain effect on the savings of both borrowers and lenders.
• E) reduces savings for both borrowers and lenders.

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Definitions:

Administrative Law

The rules and regulations governing the function and powers of the executive branch of government.

Judicial Review

Power held by the courts to review decisions made by administrative decision makers.

Statement of Claim

A legal document filed in court outlining the plaintiff's claims against the defendant and the basis for those claims.

Writ of Summons

A formal legal document issued by a court that initiates a lawsuit and requires the defendant to respond to the charges.