Which of the Following Statements About Interest Rates Is False

question 53

Multiple Choice

Which of the following statements about interest rates is false?

• A) Interest rates typically reflect the risk involved in extending a loan.
• B) Interest rates are affected by households' spending decisions.
• C) The equilibrium interest rate is determined by the intersection of the supply and demand schedules for loanable funds.
• D) The supply of loanable funds is independent of the rate of interest.

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Definitions:

Patented Fuel-Injection System

A legally protected innovation in the method or device for injecting fuel into an internal combustion engine.

Trademark Infringement

The unauthorized use of a trademark or service mark on competing or related goods and services, potentially confusing consumers.

Restitution

An equitable remedy under which a person is restored to his or her original position prior to loss or injury, or placed in the position he or she would have been in had the breach not occurred.

Counterfeit Prescription Drugs

Illegally produced medications that are made to look like genuine branded drugs but may contain incorrect or harmful ingredients.