In the Loanable Fund's Theory of Interest Determination, an Increase

question 42

Multiple Choice

In the loanable fund's theory of interest determination, an increase in the productivity of capital equipment should lead to:

• A)A reduction in the amount of saving
• B)More employment
• C)Higher interest rates
• D)Higher prices

---

Definitions:

Anal Stage

A phase in Freudian psychosexual development centered around a child's experience with anal retention or expulsion, typically occurring between 18 months and 3 years of age.

Toilet Training

The process of teaching a young child to control their bladder and bowel movements and use the toilet.

Bladder Elimination

The process of discharging urine from the body, a key function of the urinary system.

Superego

The component of the human psyche in Freudian psychoanalysis that represents internalized societal standards of right and wrong.