According to Classical Macroeconomic Theory,the Flexible Interest Rate

question 98

Multiple Choice

According to classical macroeconomic theory,the flexible interest rate

• A)is the incentive that encourages businesses to obtain credit.
• B)will tend to fall when the quantity of credit demanded exceeds the quantity of credit supplied.
• C)will tend to rise when the supply of credit exceeds the demand for credit.
• D)ensures that saving cannot exceed investment spending for extended periods of time.

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Definitions:

Investors

Persons or organizations that invest funds hoping to gain financial profits.

AUM

The cumulative market value of all investments managed by an individual or organization for its clients.

Net IRR

Net Internal Rate of Return is a performance measure that calculates the profitability of an investment adjusted for all cash flows and costs incurred.

Investors

Individuals or entities that allocate capital with the expectation of receiving financial returns, which can involve a variety of assets including stocks, bonds, and real estate.