If at a Given Real Interest Rate Desired National Saving

question 132

Multiple Choice

If at a given real interest rate desired national saving is $60 billion,domestic investment is $30 billion,and net capital outflow is $20 billion,then at that real interest rate in the loanable funds market there is a

• A)surplus.The real interest rate will rise.
• B)surplus.The real interest rate will fall.
• C)shortage.The real interest rate will rise.
• D)shortage.The real interest rate will fall.

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Definitions:

Ainsworth

An American-Canadian developmental psychologist known for her work in the development of attachment theory, famously through the "Strange Situation" assessment, which identifies patterns of attachment in young children.

Attachment

The strong, enduring, emotional bond between a child and its caregivers that some psychologists consider the basis for relationships later in life.

Moral Reasoning

The process of determining right and wrong in a given situation based on ethical principles and moral codes.

Permissive

An adjective describing a type of behavior or attitude that is tolerant, lenient, or not strict.