When Drawn Against the Real Interest Rate, the Output Supply

question 9

Multiple Choice

When drawn against the real interest rate, the output supply curve is upward sloping because labour supply is

• A) increasing the real interest rate and labour demand is independent of the real interest rate.
• B) decreasing the real interest rate and labour demand is independent of the real interest rate.
• C) independent of the real interest rate and labour demand is increasing the real interest rate.
• D) independent of the real interest rate and labour demand is decreasing the real interest rate.
• E) increasing as the wage rate rises.

---

Definitions:

Sustainable Rate

Refers to the level of extraction or use of resources that can be maintained without depleting the resource or harming the environment.

Environmental Resistance

Factors in the environment that limit the growth, abundance, or distribution of organisms or populations.

Intraspecific Competition

A form of competition where individuals of the same species compete for the same resources in an ecosystem, such as food, space, or mates.

Uniform Dispersion

A distribution pattern where individuals of a particular species are evenly spread out across a habitat or area, minimizing competition and maximizing resource use.