Other Things the Same,a Lower Real Interest Rate Decreases the Quantity

question 98

Multiple Choice

Other things the same,a lower real interest rate decreases the quantity of

• A)loanable funds demanded.
• B)loanable funds supplied.
• C)domestic investment.
• D)net capital outflow.

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Definitions:

Financing Activities

Transactions that result in changes in the size and composition of the equity and borrowings of a company.

Cash Flow Statement

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Investing Section

A part of a company's cash flow statement that shows the cash spent on or generated from investment activities, such as purchasing physical assets or securities.

Capital Assets

Long-term assets acquired for operation and not for resale, typically including buildings, machinery, and equipment.