Which of the Following Statements About Interest Rates Is False

question 53

Multiple Choice

Which of the following statements about interest rates is false?

• A) Interest rates typically reflect the risk involved in extending a loan.
• B) Interest rates are affected by households' spending decisions.
• C) The equilibrium interest rate is determined by the intersection of the supply and demand schedules for loanable funds.
• D) The supply of loanable funds is independent of the rate of interest.

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Definitions:

American Medical Association

The largest association of physicians and medical students in the United States, dedicated to promoting the art and science of medicine for better public health.

American Workers

Employees in the United States who contribute to the country's economy through various sectors and industries.

Unemployed

Individuals who are jobless, actively seeking work, and available to take up employment, usually measured as a percentage of the labor force.

1932

A significant year marked by the election of Franklin D. Roosevelt as President of the United States and the depths of the Great Depression.