Other Things Remaining the Same,as the Real Interest Rate Increases

question 42

Multiple Choice

Other things remaining the same,as the real interest rate increases,

• A)firms will borrow less funds.
• B)the demand for loanable funds curve shifts leftward.
• C)firms will borrow more funds.
• D)firms will purchase new capital with its own funds instead of taking a loan.
• E)firms' demand for funds will not change.

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Definitions:

Cilia

Microscopic, hair-like structures on the surface of cells, moving fluid or mucus across the cell surface.

Absorption

The process by which substances are taken up by the body, often referring to nutrients and drugs through the gastrointestinal tract.

Mitochondria

Membrane-bound cell organelles responsible for generating most of the cell's supply of ATP, used as a source of chemical energy.

ATP Production

The process of generating adenosine triphosphate, a molecule that stores and transfers energy within cells.