Which Statement Best Describes the Effects of an Increase in the Real

question 149

Multiple Choice

Which statement best describes the effects of an increase in the real interest rate?

• A) It discourages people from saving and so increases the quantity of loanable funds demanded.
• B) It discourages people from saving and so decreases the quantity of loanable funds demanded.
• C) It encourages people to save and so increases the quantity of loanable funds supplied.
• D) It encourages people to save and so decreases the quantity of loanable funds supplied.

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Definitions:

Fitness

In evolutionary terms, fitness refers to an organism's ability to survive and reproduce, thereby passing on genes to the next generation.

Foraging Tactic

Strategies or methods used by animals to locate, capture, and consume food.

Optimal

Referring to the most favorable condition or level for growth, reproduction, or survival of an organism or for any specific process.

Conditional Strategy

A behavioral strategy that varies depending on an individual's conditions or environmental circumstances, suggesting flexibility in response to different situations.