Which of the Following Determine(s)the Level of Interest Rates

question 9

Multiple Choice

Which of the following determine(s) the level of interest rates?
i.The supply of savings by households and businesses
ii.The demand for investment funds
iii.The government's net supply of and/or demand for funds

• A) i only
• B) ii only
• C) i and ii only
• D) i, ii and iii

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Definitions:

Unemployment Of Resources

refers to the situation where available factors of production such as labor, capital, and land are not being used in the production process.

Bowed-Out Frontier

Describes a production possibility frontier that curves outward, indicating increasing opportunity costs for producing goods.

Production Of Good

The process of creating or manufacturing merchandise that satisfies consumer demands.

Good A And B

Two hypothetical or specified products used in economic models to illustrate various economic principles.