The Quantity of Loanable Funds Supplied Increases If the Real

question 30

Multiple Choice

The quantity of loanable funds supplied increases if the real interest rate rises, all other things remaining the same, because the

• A)cost of living is determined by the real interest rate.
• B)real interest rate is the opportunity cost of consumption.
• C)demand for investment increases when the real interest rate rises.
• D)real interest rate is the opportunity cost of saving.
• E)real interest rate is inversely related to the cost of buying on credit.

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Definitions:

Financial Burdens

Economic hardships or pressures resulting from obligations such as debts, expenses, and responsibilities that strain an individual's or family's resources.

Loss of Faith

The process or experience of losing belief or trust in a particular ideology, religion, or individual.

Sexual Stigmatization

The act of devaluing or marginalizing individuals based on their sexual behaviors or identities.

Same-Sex Marriage

The legal or socially recognized marriage between two people of the same sex.