The Quantity of Loanable Funds Demanded Increases When

question 63

Multiple Choice

The quantity of loanable funds demanded increases when

• A)the supply of loanable funds decreases.
• B)the real interest rate rises.
• C)expected profit decreases.
• D)wealth increases.
• E)the real interest rate falls.

---

Definitions:

Normal Distribution

A bell-shaped curve that describes the spread of a variable where most observations cluster around the central peak and the probabilities for values farther from the mean taper off symmetrically.

Probability

Probability measures the likelihood of a given event occurring, ranging from 0 (impossibility) to 1 (certainty).

Cluster Sample

A sampling technique where the population is divided into groups, or clusters, and a sample of these clusters is selected to represent the population.

Simple Random Sample

A sample drawn in such a way that every element of the population has an equal chance of being selected.