The Quantity of Loanable Funds Demanded Increases If the Real

question 100

Multiple Choice

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

• A)determines the cost of living.
• B)affects the supply of saving which, in turn, determines the quantity of investment.
• C)affects the quantity of saving supplied.
• D)is not related to the price of bonds and stocks.
• E)is the opportunity cost of investment.

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Definitions:

ISO 26000:2010

An international standard providing guidelines on social responsibility for businesses and organizations.

Precautionary Approach

A principle advising that action should be taken to prevent harm when it is uncertain, prioritizing prevention over reaction.

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