A Rise in the Demand for Funds May Not Result

question 1

Multiple Choice

A rise in the demand for funds may not result in a rise in interest rates if

• A)there is an increase in the supply of funds.
• B)the supply curve for funds shifts to the left.
• C)Net lenders, both domestic and foreign, refuse to act.
• D)All of the above are correct.

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Definitions:

Pricing Infatuation

An obsession or excessive focus on the pricing aspect of a product or service rather than its value or other attributes.

Price Cutting

A competitive strategy whereby a company lowers its product prices to attract customers and increase market share.

Sales Volume

The total number of units of a product sold within a specific time period.

Component Parts

The elements or individual items that, when combined, form a complete product or system.