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The Loanable Funds Theory Is an Extension of Fisher's Theory

question 37

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The loanable funds theory is an extension of Fisher's theory and proposes that the equilibrium rate of interest reflects the demand and supply of funds, which depend on savers' willingness to save, borrowers' expectations regarding the profitability of investing, and the government's action regarding money supply.


Definitions:

Objective Personality

A concept in psychology that refers to the assessment of an individual's personality based on objective and measurable criteria.

Projective Personality

A type of personality test in which the respondent’s interpretation of ambiguous scenes or stimuli is used to analyze their personality characteristics and underlying thought processes.

Personality Assessment Inventory

A psychological test used to evaluate personality traits and psychopathology.

Objective Personality

Tests designed to measure personality traits or characteristics without bias from the test-taker's subjective interpretation.

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