As the ________ Interest Rate Increases, the Quantity of Loanable

question 60

Multiple Choice

As the ________ interest rate increases, the quantity of loanable funds demanded ________.

• A) real; increases
• B) real; decreases
• C) nominal; increases
• D) nominal; decreases

---

Definitions:

Straight-Line Depreciation

A method of allocating an asset's cost evenly over its useful life.

Initial Investments

The initial amount of money invested in a project, asset, or company to start operations or purchase assets.

Income Taxes

Taxes imposed by the government on the income generated by individuals and businesses.

Capital Budgeting

The process of planning and managing a company's investments in major projects or assets with long-term implications.