Which of the Following Factors Would Not Be Expected to Affect

question 21

Multiple Choice

Which of the following factors would not be expected to affect the nominal interest rate?

• A) the supply of loanable funds
• B) the demand for loanable funds
• C) the coupon rate on previously issued government bonds
• D) the expected rate of inflation
• E) government spending and borrowing

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Definitions:

Appliance Producers

companies engaged in the manufacture of electrical or mechanical devices designed for household use.

Crony Capitalism

A type of economic system where business success is heavily influenced by close relationships between business owners and government officials.

Government Regulation

Government regulation encompasses the laws and rules set forth by the government intended to control or manage certain practices, activities, or behaviors within an economy or society.

Entry Barriers

These are obstacles that prevent or hinder new competitors from easily entering an industry or area of business.