Policies to Promote Growth by Increasing Saving and Investment Work

question 31

Multiple Choice

Policies to promote growth by increasing saving and investment work through

• A)decreasing the supply of loanable funds,lowering the interest rate,raising the level of investment in physical capital.
• B)increasing the supply of loanable funds,increasing the interest rate,raising the level of investment in physical capital.
• C)increasing the supply of loanable funds,lowering the interest rate,lowering the level of investment in physical capital.
• D)increasing the supply of loanable funds,lowering the interest rate,raising the level of investment in physical capital.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date.

Semiannually

A term indicating that an event or action occurs twice a year.

Capital Gain

The profit earned from the sale of an asset when its selling price exceeds its purchase price.

High-duration

Describes bonds or other fixed-income securities that have high sensitivity to changes in interest rates, usually because they have a long time until maturity.