Suppose the Real Interest Rate Rises and the Quantity of Loanable

question 59

Multiple Choice

Suppose the real interest rate rises and the quantity of loanable funds increases. These changes could have been the result of

• A)an increase in the default risk.
• B)households expecting higher future income.
• C)firms expecting lower future profits.
• D)firms expecting higher future profits.

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Definitions:

Prostitutes

Individuals who engage in sexual activity with others in exchange for money or other forms of compensation.

Coprophilia

A paraphilia involving sexual arousal and pleasure from feces.

Feces

Waste matter expelled from the bowels after food has been digested; also known as stool.

Zoophilia

A paraphilia involving a sexual fixation on non-human animals.