Choose the Correct Statement

question 48

Multiple Choice

Choose the correct statement.

• A)Demand and supply in the loanable funds market determine the long-term real interest rate.
• B)The long-term real interest rate influences expenditure decisions.
• C)In the short run, the supply of loanable funds is influenced by the supply of bank loans.
• D)A fall in the overnight loans rate that increases the supply of bank loans increases the supply of loanable funds and lowers the equilibrium real interest rate.
• E)All of the above are correct.

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Definitions:

Visual Illusions

Perceptual experiences where the visual perception of an object or scene diverges significantly from reality, often exploring the nature of human visual perception.

Door-In-The-Face Technique

A persuasion strategy that involves making a large request that is expected to be refused in order to make a smaller request seem more reasonable.

Frugal

Characterized by thriftiness and economical use of resources, avoiding waste and unnecessary expense.

Absolute Threshold

The minimum intensity of stimulation required to produce a sensory experience or for a stimulus to be detected 50% of the time.