If,at a Given Interest Rate,the Quantity of Savings Supplied Is

question 144

Multiple Choice

If,at a given interest rate,the quantity of savings supplied is greater than the quantity of investment demanded,what can we conclude?

• A)There is a shortage of savings and real interest rates will rise.
• B)There is a surplus of savings and real interest rates will rise.
• C)There is a shortage of savings and real interest rates will fall.
• D)There is a surplus of savings and real interest rates will fall.

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Definitions:

Slope

Mathematically, the rate of change or gradient of a line, representing the ratio of the vertical change to the horizontal change between two points on the line.

Regression Analysis

A statistical method for examining the relationship between a dependent variable and one or more independent variables.

Statistical Models

Representations of complex systems through mathematical formulas and algorithms based on statistical principles.

Dependent Variable

The variable in an experiment or study that is expected to change in response to changes in another variable (the independent variable).