Which of the Following Occurs If the Real Interest Rate

question 20

Multiple Choice

Which of the following occurs if the real interest rate falls?

• A) The demand for loanable funds increases and the demand for loanable funds curve shifts rightward.
• B) The demand for loanable funds decreases and the demand for loanable funds curve shifts leftward.
• C) The quantity of loanable funds demanded increases and there is a movement down along the demand for loanable funds curve.
• D) The quantity of loanable funds demanded decreases increases and there is a movement up along the demand for loanable funds curve.
• E) The quantity of loanable funds demanded increases and the demand for loanable funds curve shifts rightward.

---

Definitions:

Target Market

A specific group of consumers identified as the recipients of a particular product or service, characterized by their unique needs and preferences.

Economy Of Scale

The cost advantage achieved by an increase in production, resulting in the reduction of costs per unit due to factors like operational efficiency.

Production Quantities

The amount of product that is produced within a specific period.

Microbusiness

A small business typically defined by having fewer than 10 employees and operating on a very small scale.