Figure 32-1 -Refer to Figure 32-1.If the Real Interest Rate Is 6

question 21

Multiple Choice

Figure 32-1
-Refer to Figure 32-1.If the real interest rate is 6 percent,the quantity of loanable funds demanded is

• A)$20 billion,and the quantity supplied is $40 billion.
• B)$20 billion,and the quantity supplied is $60 billion.
• C)$60 billion,and the quantity supplied is $20 billion.
• D)$60 billion,and the quantity supplied is $40 billion.

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Definitions:

Credit

A contractual agreement in which a borrower receives something of value now and agrees to repay the lender at a later date, generally with interest.

Receipt

A written acknowledgment that something of value has been transferred from one party to another.

Statute of Frauds

A rule of law that mandates specific contract types to be documented in writing and signed by the accountable party for them to be valid and enforceable.

Oral Agreement

A verbal contract in which the terms have been agreed upon through spoken communication, legally binding in many scenarios but harder to prove in court.