Suppose That There Is an Increase in Disposable Income and Simultaneously

question 136

Multiple Choice

Suppose that there is an increase in disposable income and simultaneously an increase in the expected profitability of investment.As a result,the equilibrium real interest rate ________ and the equilibrium quantity of loanable funds ________.

• A)remains unchanged;increases
• B)falls;increases
• C)rises;increases
• D)might rise,fall or remain unchanged;increases
• E)might rise,fall or remain unchanged;decreases

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Definitions:

Malpractice Action

A legal lawsuit initiated because of professional negligence or failure to perform a professional duty, usually against a healthcare provider or lawyer.

Accountants

Accountants are professionals adept in managing financial records, ensuring accuracy in reporting, and compliance with financial laws and regulations.

Real Estate Brokers

Licensed professionals who arrange the sale, lease, or management of properties and advise clients on market conditions, prices, and mortgages.

Material Breach

A significant violation or failure to perform one's duties under a contract, which justifies the other party's right to terminate the agreement and seek damages.