If the Real Interest Rate in the Domestic Loanable Funds

question 206

Multiple Choice

If the real interest rate in the domestic loanable funds market increases,

• A) firms will have an added incentive to undertake investment projects.
• B) households will save less.
• C) the net inflow of foreign capital will tend to increase.
• D) it will be cheaper to purchase goods and services now rather than in the future.

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Definitions:

Creditor Beneficiary

A third party that benefits from a contract made between two other parties, especially in terms of having the right to claim performance or compensation.

Donee Beneficiary

An external party that gains advantages from an agreement established between two different parties.

Delegation

The process of assigning authority and responsibilities to others to carry out specific activities or tasks.

Assignment Effective

The point in time when a contractual assignment of rights or interests from one party to another becomes valid and enforceable.