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:

Pts/Gm

Points Per Game, a statistical measure used mainly in sports to calculate the average number of points scored by a player or team per game.

Least-Squares Fit

A method of estimating the parameters of a model by minimizing the sum of the squares of the differences between the observed and predicted values.

Pass%

The percentage of individuals or units that meet or exceed a defined benchmark or standard.

Standard Error

A measure of the statistical accuracy of an estimate, often used to quantify the uncertainty in the mean of a population estimated from a sample.