Figure 13-4

question 180

Multiple Choice

Figure 13-4. On the horizontal axis of the graph, L represents the quantity of loanable funds in billions of dollars.
-Refer to Figure 13-4. If the equilibrium quantity of loanable funds is $56 billion and if the rate of inflation is 4 percent, then the equilibrium real interest rate is

• A)lower than 6 percent..
• B)6 percent.
• C)between 6 percent and 8 percent.
• D)higher than 8 percent.

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Definitions:

Social Responsibility

The obligation of individuals, organizations, and businesses to act for the benefit of society at large, often encompassing ethical behavior and sustainable practices.

Philanthropic

Pertaining to the act of donating money, goods, services, or time to the needy, directly or through a charitable foundation.

Legal Obligation

A requirement enforced by law that mandates individuals or entities to act or refrain from certain actions.

Social Responsibility

The obligation of organizations to act in ways that benefit society and the environment beyond their immediate business interests.