Suppose the Real Interest Rate Rises and the Quantity of Loanable

question 118

Multiple Choice

Suppose the real interest rate rises and the quantity of loanable funds decreases. These changes could have been the result of

• A) firms expecting higher future profits.
• B) an increase in disposable income.
• C) an increase in household wealth.
• D) a decrease in the default risk.

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Definitions:

Visual Cortex

The part of the cerebral cortex responsible for processing visual information, located in the occipital lobe of the brain.

Occipital Lobes

The rearmost lobe in each cerebral hemisphere of the brain, primarily responsible for processing visual information.

Split Brain

A condition resulting from surgery that isolates the brain’s two hemispheres by cutting the fibers (mainly those of the corpus callosum) connecting them.

Conscious Awareness

The state of being fully alert and aware of one’s thoughts, feelings, and environment.