Suppose That While Households Are Deciding to Increase Savings, the Demand

question 290

Multiple Choice

Suppose that while households are deciding to increase savings, the demand by firms for investment funds falls. In the market for loanable funds, the real interest rate will _____ and the quantity of loanable funds will _____.

• A) rise; fall
• B) rise; rise
• C) fall; rise, fall, or stay the same
• D) rise, fall, or stay the same; rise

---

Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in an equal amount each year.

Kelly Blue Book

A guide that provides values, pricing, and information for automotive vehicles, helping consumers and dealers determine fair prices.

Car Payment

The monthly payment made by a borrower to a lender or financier for the loan used to purchase a vehicle.

Stem-And-Leaf Plot

A graphical representation of numerical data by placing digits in columns to show the distribution of numbers.