Suppose the Real Interest Rate Increases from 4 Percent to 6

question 71

Multiple Choice

Suppose the real interest rate increases from 4 percent to 6 percent. As a result,

• A) governments decrease the quantity supplied of loanable funds.
• B) firms increase their demand for loanable funds.
• C) governments decrease their demand for loanable funds.
• D) firms decrease the quantity demanded of loanable funds.
• E) governments increase the supply of loanable funds.

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Definitions:

Direct Order Plan

An organizational structure for messages that starts with the main idea or conclusion, followed by supporting details.

Organizing Information

Organizing information involves systematically arranging data or details in a structured manner to improve accessibility, understanding, or utilization.

Planning Stage

Refers to the initial phase in a project or process where objectives are defined, resources are allocated, and the approach is formulated.

Revising

The process of reviewing and altering a document or artwork to improve it or to reflect changes.