Which of the Following Events Would Most Likely Cause the Nominal

question 66

Multiple Choice

Which of the following events would most likely cause the nominal interest rate to fall?

• A)A decrease in the supply of loanable funds
• B)An increase in the demand for loanable funds
• C)An increase in the supply of loanable funds and an increase in the demand for loanable funds
• D)An increase in the supply of loanable funds and a decrease in the demand for loanable funds
• E)A decrease in the supply of loanable funds and an increase in the demand for loanable funds

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Definitions:

Arctic Circle

The most northerly of the five major circles of latitude that mark maps of the Earth, defining the boundary of the Arctic region.

Conifers

Trees and shrubs that bear cones and typically have needle-shaped or scale-like leaves, such as pines and cedars.

Boreal Forest

Extensive high-latitude forest of the Northern Hemisphere; conifers are the predominant vegetation.

Temperatures

A measure of the warmth or coldness of an object or substance with reference to some standard value.