Which of the Following Statements About Interest Rates Is False

question 10

Multiple Choice

Which of the following statements about interest rates is false?

• A)Interest rates typically reflect the risk involved in extending a loan.
• B)Interest rates are affected by households' spending decisions.
• C)The equilibrium interest rate is determined by the intersection of the supply and demand schedules for loanable funds.
• D)The supply of loanable funds is independent of the rate of interest.

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