What Does a Higher Real Interest Rate Lowers the Quantity

question 8

Multiple Choice

What does a higher real interest rate lowers the quantity of?

• A)national saving
• B)net capital outflow
• C)loanable funds demanded
• D)loanable funds supplied

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Definitions:

Food Industry

The sector that covers the processing, preparation, and distribution of food products from agricultural production to consumers.

Total Revenue

The total income generated by a company from its business activities before any expenses are subtracted.

Recession

A period of significant economic decline spread across the economy lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces.