Which of the Following Is True

question 8

Multiple Choice

Which of the following is true?
I. As the real interest rate increases, people increase the quantity they save.
II. The supply of loanable funds curve is downward sloping.
III. As disposable income increases, the supply of loanable funds curve becomes steeper.

• A)I and III only
• B)II and III only
• C)I only
• D)III only
• E)I, II, and III

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Definitions:

Occupations

The various kinds of jobs or professions that individuals engage in to earn a living.

Crowding Model

A theory in public economics that describes how public sector investments can lead to a displacement of private sector activity, especially in cases of finite resources.

High-Paying Occupations

Jobs that offer wages significantly above the average for all occupations.

Domestic Output

The aggregate monetary value of goods and services created within a country's borders throughout a specified period.