Which of the Following Statements Is Correct

question 106

Multiple Choice

Which of the following statements is correct?

• A)The interest rate that is usually reported is the interest rate that has been corrected for inflation.
• B)The supply of,and demand for,loanable funds depend on the real (rather than nominal)interest rate.
• C)If the nominal interest rate has decreased and the real interest rate has also decreased,then the inflation rate must have decreased as well.
• D)All of the above are correct.

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Definitions:

Marginal Revenue

The extra revenue a company earns by selling an additional unit of a product or service.

Output Level

The quantity of goods or services produced by a business, industry, or economy at a given time.

Consumer Surplus

The gap in the total amount consumers are ready and capable of investing in a service or good and the actual outlay they make.

Maximum Price

A price ceiling set by a governing body, above which a particular good or service cannot be sold to prevent prices from becoming prohibitively high.