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:

Parietal Lobe

A region of the brain associated with processing sensory information concerning the body's position and navigation.

Frontal Lobe

The frontal lobe is a region in the brain involved in decision making, problem solving, control of purposeful behaviors, consciousness, and emotions.

Temporal Lobe

A region of the cerebrum responsible for hearing, understanding language, and storing memories.

Occipital Lobe

The region of the brain located at the back of the head, responsible for processing visual information.