The Following Figure Plots Real Interest Rate Against Quantity of Credit

question 52

Multiple Choice

The following figure plots real interest rate against quantity of credit.

-Refer to the figure above.Without a credit market such as that pictured,________.

• A) it would be less risky to save
• B) resources would be allocated more efficiently
• C) resources would be allocated less efficiently
• D) it would be more risky to save

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Definitions:

Ethics

A set of moral principles that govern the behavior of individuals or organizations and guide decision-making and conduct.

Stakeholders

Stakeholders are individuals, groups, or organizations that have an interest in the performance and actions of a company, which can include shareholders, employees, customers, and suppliers.

Conflicts of Interest

Situations where an individual's or entity’s obligations to multiple parties could compromise the decision-making or actions taken, typically due to a clash between personal and professional interests.

Accounting Profit

The net income of a company as calculated by subtracting total expenses from total revenue, according to accounting rules.