The Supply and Demand for Saving Are Brought into Equilibrium

question 56

Multiple Choice

The supply and demand for saving are brought into equilibrium by adjustments of the ________ rate.

• A)discount
• B)nominal interest
• C)real interest
• D)dividend

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Definitions:

Inelastic

Describes a situation where the demand or supply for a good or service is relatively unresponsive to changes in price.

Elastic

Describes a situation in economics where the supply or demand for a good or service significantly changes in response to changes in price.

Price Ceiling

A legal maximum price that can be charged for a particular good or service, aiming to keep prices affordable.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded in the market.