An Economy's Upward-Sloping Supply Curve of Desired Saving Is Usually

question 38

Multiple Choice

An economy's upward-sloping supply curve of desired saving is usually plotted with ________ on the vertical axis.

• A)the price of capital
• B)capital stock
• C)the market interest rate
• D)technology
• E)the general price level

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Definitions:

Installment Loans

Loans that are repaid over time with a set number of scheduled payments, commonly used for items like cars and large appliances.

Financial Intermediary

An institution that acts as a middleman between savers and borrowers, facilitating the flow of funds in the economy, such as banks or credit unions.

Insurance Companies

Entities that provide financial protection and reimbursement of damages to individuals and businesses in exchange for premiums.

United States Treasury

The department of the federal government responsible for managing national finances, including producing currency, collecting taxes, and issuing government debt.