The Source of the Supply of Loanable Funds

question 101

Multiple Choice

The source of the supply of loanable funds

• A)is saving and the source of demand for loanable funds is investment.
• B)is investment and the source of demand for loanable funds is saving.
• C)and the demand for loanable funds is saving.
• D)and the demand for loanable funds is investment.

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Definitions:

Actual Inflation Rate

The rate at which the general level of prices for goods and services is rising, and subsequently purchasing power is falling, measured over a particular period.

Short-run Phillips Curve

A graphical representation that shows the inverse relationship between the rate of inflation and the rate of unemployment in an economy over a short period.

Farthest from Origin

In geometric terms, the point on a graph that is at the greatest distance from the origin, often used metaphorically to describe extreme or outlier conditions.

Phillips Curve Analysis

An economic concept that analyzes the inverse relationship between rates of unemployment and corresponding rates of inflation.