The Real Interest Rate Is ________ Related to the Supply

question 58

Multiple Choice

The real interest rate is ________ related to the supply of loanable funds because ________.

• A) positively; the opportunity cost of consumption expenditure increases as the real interest rate rises
• B) positively; people are motivated to increase their consumption expenditure as the real interest rate rises
• C) negatively; the opportunity cost of consumption expenditure increases as the real interest rate rises
• D) negatively; people are motivated to save more as the real interest rate rises
• E) None of the above answers is correct.

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Definitions:

Sternal Notch

The visible dip at the top of the sternum between where the collarbones meet at the base of the neck.

Tracheostomy Tube

A tube inserted through a surgically created hole in the front of the neck and into the trachea to aid in breathing.

Hyperoxygenating

The process of increasing the amount of oxygen in the blood or tissues, often used in medical treatments to enhance oxygenation in patients.

Negative Pressure

A condition in which the pressure in a given environment is lower than the atmospheric pressure, typically used in medical settings to contain airborne contaminants.