The Incentive to Lend Increases as the Real Rate of Interest

question 155

True/False

The incentive to lend increases as the real rate of interest decreases.

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Definitions:

Labor Market

The marketplace where workers seek employment and employers seek workers, defined by supply and demand for labor.

Marginal Productivity

The additional output that is produced by using one more unit of a factor of production, keeping all other factors constant.

Income Distribution

The way in which a nation’s total income is distributed among its population.

Factor Markets

Markets where services of the factors of production (land, labor, capital) are bought and sold.