The Quantity of Loanable Funds Demanded Increases When

question 24

Multiple Choice

The quantity of loanable funds demanded increases when

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

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Definitions:

Bottleneck

A point of congestion or blockage in a system, process, or production line that significantly delays or prevents progress.

Fixity of Production

The characteristic of production processes where inputs and outputs are fixed in the short term, allowing little flexibility.

Average Costs

is the total costs divided by the quantity produced, used to determine the cost of producing one unit of goods or services.

Average Cost

The aggregate expense of manufacturing, when divided by the quantity of items made.