A Rise in the Real Interest Rate

question 124

Multiple Choice

A rise in the real interest rate

• A) creates a movement downward along the demand for loanable funds curve.
• B) shifts the demand for loanable funds curve leftward.
• C) creates a movement upward along the demand for loanable funds curve.
• D) shifts the demand for loanable funds curve rightward.

---

Definitions:

Unemployment

A state in which a person who is actively seeking employment is unable to find work.

Substitute Marriage Cohabitation

Substitute Marriage Cohabitation refers to living arrangements where couples live together in a long-term relationship that mimics marriage in many aspects but without legal marital status.

Premarital Cohabitation

The act of living together in a romantic relationship without being married.

Dating Cohabitation

Refers to unmarried couples living together in a romantic relationship.