Since the Aggregate Demand for Loanable Funds Is the Sum

question 53

True/False

Since the aggregate demand for loanable funds is the sum of the quantities demanded by the separate sectors, and since most of these sectors are likely to demand a larger quantity of funds at lower interest rates (other things being equal), the aggregate demand for loanable funds is positively related to interest rates at any point in time.

---

Definitions:

Economic Conditions

The state of the economy at a given time, encompassing such factors as inflation rates, employment levels, and GDP.

Proletariat

Workers; those who have no means of production of their own and so are reduced to selling their labor power in order to live.

Selling Labor

The act of offering one's work or services in exchange for compensation, typically in the form of wages or salary.

Social Group

A collection of individuals who interact with each other based on shared experiences, interests, or goals, forming a cohesive unit within society.