If the Real Interest Rate Increases from 3 Percent to 5

question 131

Multiple Choice

If the real interest rate increases from 3 percent to 5 percent,

• A) the nominal interest rate will also increase.
• B) the demand for loanable funds curve will shift rightward.
• C) the supply of loanable funds curve will shift rightward.
• D) there will be a movement up along the demand for loanable funds curve.

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Definitions:

Confidence Interval

A range of values, derived from the sample statistics, that is likely to contain the value of an unknown population parameter.

Population Parameter

A numerical value summarizing the whole population, commonly used in statistics, such as the mean or standard deviation.

Confidence Interval

A range of values, derived from sample data, that is likely to contain the value of an unknown population parameter, with a specified level of confidence.

Population Parameter

A numerical value that represents a characteristic or measure of an entire population.