-In the Above Figure, If the Real Interest Rate Is

question 69

Multiple Choice

-In the above figure, if the real interest rate is 8 per cent, there is

• A)underproduction in this economy.
• B)a surplus of loanable funds.
• C)a shortage in available funds for investment.
• D)a shortage of loanable funds.

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Definitions:

Doctrine

A belief or set of beliefs held and taught by a church, political party, or other group.

Intention

A psychological state involving a commitment or determination to carry out a specific action or achieve a specific outcome.

Intended Beneficiary

A third party in whose favor a contract is made.

Privity of Contract

A doctrine in contract law that prohibits any person who is not a party to a contract from enforcing or being bound by the terms of that contract.