Which of the Following Factors Influences the Real Rate of Interest

question 49

Multiple Choice

Which of the following factors influences the real rate of interest?

• A)the rate of inflation
• B)return on capital investments.
• C)investor's positive time preference.
• D)both B and C.

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Definitions:

Oligopolistic Industry

An industry characterized by a small number of firms controlling the majority of the market share, leading to limited competition.

International Cartel

An agreement between companies, often from different countries, to control prices, limit production, or divide markets for goods or services internationally, thereby reducing competition.

Noncollusive Oligopoly

A market structure where a few companies dominate but do not illegally agree to control prices or market share.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for competition based on quality, price, and marketing.