Other Things Remaining the Same, a ________ in the Real

question 259

Multiple Choice

Other things remaining the same, a ________ in the real interest rate ________ the quantity of saving supplied and ________ the quantity of loanable funds supplied.

• A) fall; increases; increases
• B) rise; increases; increases
• C) fall; increases; decreases
• D) fall; decreases; increases
• E) rise; increases; decreases

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Definitions:

Credits

Entries in the accounting system that can decrease assets or increase liabilities and equity on a company’s balance sheet, reflecting the decrease in the company's resources or increase in claims against those resources.

Normal Balance

The side of an account where increases are recorded, which is the debit side for assets and expenses, and the credit side for liabilities, equity, and revenue.

Rent Expense

An expense account that records the cost incurred by a business to utilize property or equipment for operations.

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account, reflected on the left side of an account.