A Real Interest Rate That Causes the Supply of Saving

question 15

Multiple Choice

A real interest rate that causes the supply of saving to be equal to the demand for saving is an example of the:

• A) scarcity principle.
• B) principle of comparative advantage.
• C) equilibrium principle.
• D) principle of increasing opportunity cost.

---

Definitions:

Runner's High

A euphoric state often experienced by long-distance runners, attributed to the release of endorphins.

Epileptic Seizure

A sudden surge of electrical activity in the brain, leading to various symptoms such as convulsions and loss of consciousness.

Neurotransmitter GABA

Gamma-Aminobutyric Acid: an inhibitory neurotransmitter in the brain, involved in reducing neuronal excitability.

Frontal Lobes

The region of the brain located at the front of each cerebral hemisphere, involved in complex cognitive functions, including behavior, personality, and voluntary movement.