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.

Grasp the objectives of effective compensation management, including cost control, behavior reinforcement, and legal compliance.

Understand the purpose and process of job evaluation in establishing pay levels.

Recognize the importance of wage and salary surveys in determining compensation.

Comprehend different methods of job evaluation and their application.

---

Definitions:

Spearman Rank Correlation

An unparametric method for determining rank correlation that evaluates the extent to which two variables' relationship can be characterized by a monotonic function.

Ordinal Variables

Variables that represent categories with a natural order but which do not have a fixed interval between values, allowing for ranking but not quantifiable difference measurement.

Interval Variables

Variables that have meaningful distances between measurements but do not have a true zero point, allowing for both positive and negative values.

Normality Requirement

The assumption that the data or residuals in certain statistical models follow a normal distribution, required for the validity of many tests.