As the ________ Interest Rate Rises ________

question 38

Multiple Choice

As the ________ interest rate rises ________.

• A)nominal; the demand for loanable funds curve shifts rightward
• B)real; the demand for loanable funds curve shifts rightward
• C)nominal; the demand for loanable funds curve shifts leftward
• D)real; a movement occurs up along the demand for loanable funds curve
• E)real; a movement occurs down along the demand for loanable funds curve

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Definitions:

Competitive Suppliers

Entities that compete in a market to offer goods or services, often leading to lower prices and higher quality.

Price Paid

The actual amount of money exchanged for a good or service at the point of sale.

Demand Function

A mathematical expression representing the relationship between the quantity demanded of a good and its influencing factors like price, income, and preferences.

Supply Function

A mathematical representation of the relationship between the quantity of a good or service that producers are willing to sell and the price of that good or service.