In 2009, Which of the Following Events Described the Demand

question 119

Multiple Choice

In 2009, which of the following events described the demand for loanable funds?
i. The real interest rate declined and positively affected the quantity of loanable funds demanded.
ii. Firms increased their investment demand.
iii. Firms' profit expectations negatively affected the demand for loanable funds.

• A) i and iii.
• B) i only.
• C) i and ii.
• D) ii only.
• E) ii and iii.

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Definitions:

Homo Erectus

An extinct species of hominid that lived throughout most of the Pleistocene geological epoch, known for being one of the first early humans to have a stature similar to that of modern humans and to use fire.

Bipedalism

The ability to walk upright on two legs, characteristic of humans and their ancestors.

Ultraviolet Sun Radiation

A type of electromagnetic radiation emitted by the sun that has shorter wavelengths than visible light, can cause skin damage, and is instrumental in the production of vitamin D in the skin.

Free Hands

The freedom or capacity to act or operate without constraint or interference.