Figure 321 Represents the Market for Loanable Funds

question 134

Multiple Choice

Figure 32.1 represents the market for loanable funds.The equilibrium interest rate

• A)Is less than the rate of return on capital.
• B)Is greater than the rate of return on capital.
• C)Represents the price paid for the use of money.
• D)Is equal to the risk premium.

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Definitions:

Sweden

A Nordic country in Northern Europe, known for its high standard of living, well-developed welfare states, and neutral foreign policy stance.

Boats

Watercraft of various sizes and types that are used for transportation, recreation, or as a dwelling.

Absolute Advantage

The ability of a country, individual, or company to produce a good or service more efficiently than competitors using the same amount of resources.

Portugal

A country located in southwestern Europe on the Iberian Peninsula, known for its rich history, cultural heritage, and maritime discoveries.