If Saving Exceeds Investment Demand, and Consumption Is Not a Function

question 124

Multiple Choice

If saving exceeds investment demand, and consumption is not a function of the interest rate:

• A) the demand for loans exceeds the supply of loans.
• B) the interest rate will fall.
• C) the interest rate will rise.
• D) saving will fall.

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Definitions:

Soft Spots

Areas on an infant's skull where the bones have not yet fused, formally known as fontanelles, allowing the head to be flexible during birth and growth.

Tough Cartilage

A type of strong, flexible connective tissue found in various parts of the body, such as joints, acting as a cushion and providing structural support.

Juvenile Rheumatoid Arthritis

A type of arthritis that affects children under the age of 16, characterized by inflammation, pain, and stiffness in joints.

Neonatal Jaundice

A common condition in newborns characterized by yellowing of the skin and eyes due to a high level of bilirubin, a pigment in the blood.