Which of the Following Will Increase the Real Interest Rate

question 84

Multiple Choice

Which of the following will increase the real interest rate?

• A)an increase in the supply of loanable funds
• B)an increase in household saving
• C)an increase in the demand for loanable funds
• D)an increase in the budget surplus

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Definitions:

Average Variable Cost

The total variable costs (costs that change with the amount of output produced) divided by the quantity of output produced.

Fixed Cost

Costs that do not vary with the level of output or activity, such as rent or salaries.

Marginal Cost

The increased cost incurred from making one more unit of a product or service.

Average Total Cost

The total cost divided by the quantity of output produced, representing the average cost per unit of output.