An Increase in the Real Interest Rate Results in Which

question 101

Multiple Choice

An increase in the real interest rate results in which of the following?

• A)an increase in the demand for loanable funds
• B)a decrease in the demand for loanable funds
• C)an increase in the quantity of loanable funds supplied
• D)Both B and C will occur as a result of an increase in the real interest rate.

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Definitions:

Id

The unconscious system of the personality, which contains the life and death instincts and operates on the pleasure principle; source of the libido.

Iceberg Metaphor

A psychological model used to describe the conscious mind as the tip of the iceberg visible above water, with the unconscious mind as the larger mass below water.

Consciousness Levels

Refers to the varying degrees of awareness individuals have of themselves and the environment around them.

Ego

In Freud’s theory, the logical, rational, largely conscious system of personality, which operates according to the reality principle.