-In the Above Figure, If the Real Interest Rate Is

question 11

Multiple Choice

-In the above figure, if the real interest rate is 4 percent, then there

• A) there is a surplus of loanable funds.
• B) is equilibrium in the loanable funds market.
• C) the real interest rate will rise.
• D) the demand curve for loanable funds will shift rightward.

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Definitions:

Hindsight Bias

The tendency to believe, after learning an outcome, that one would have foreseen it, often referred to as the "I-knew-it-all-along" effect.

Proactive Interference

The effect wherein earlier memories hinder the ability to remember more recent memories.

Retroactive Interference

A memory disruption phenomenon where new information interferes with the ability to recall old information.

Memorization

The process of committing something to memory or learning it by heart.