Which Statement Best Describes the Effects of an Increase in the Real

question 149

Multiple Choice

Which statement best describes the effects of an increase in the real interest rate?

• A) It discourages people from saving and so increases the quantity of loanable funds demanded.
• B) It discourages people from saving and so decreases the quantity of loanable funds demanded.
• C) It encourages people to save and so increases the quantity of loanable funds supplied.
• D) It encourages people to save and so decreases the quantity of loanable funds supplied.

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Definitions:

Hostile Feelings

Negative and aggressive emotions directed towards others, which can lead to antagonistic attitudes or behaviors.

Cultures of Honor

Social groups that place a high value on the integrity and reputation of their members, often responding aggressively to insults or threats.

Collectivist Cultures

Societies that prioritize the group over the individual, emphasizing interconnectedness, cooperation, and group goals.

Aggression

Behavior intended to harm or injure another individual, either physically or psychologically.