An Increase in the Demand for Loanable Funds Will Occur

question 184

Multiple Choice

An increase in the demand for loanable funds will occur if there is

• A)an increase in the real interest rate.
• B)a decrease in the real interest rate.
• C)an increase in expected profits from firm investment projects.
• D)an increase in the nominal interest rate accompanied by an equal increase in inflation.

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Definitions:

Manufacturing Output

The total value of goods produced by the manufacturing sector of an economy within a specific period.

United States

A country located in North America, consisting of 50 states and a federal district, known for its significant influence on global politics, economy, and culture.

Unemployment Insurance

A program organized by the government that offers monetary support to jobless individuals who fulfill specific qualifying criteria.

Bank Deposit Insurance

A protection scheme for bank depositors, ensuring their deposits are safe up to a certain limit in case of bank failure.