An Increase in the Real Interest Rate Results in a

question 166

Multiple Choice

An increase in the real interest rate results in a

• A) movement along the supply of loanable funds curve.
• B) rightward shift in the supply of loanable funds curve.
• C) leftward shift in the supply of loanable funds curve.
• D) none of the above

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Definitions:

Pair Of Equations

Two equations that are solved together to find a common solution.

Six-figure Accuracy

A level of precision where a numerical value is accurate to six digits.

Division

A mathematical operation where a number is divided by another number to find how many times the latter is contained in the former.

Negative Exponent

A mathematical expression that denotes division, specifically using powers of the base number to represent fractions or division by that base number.