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:

Capital Balances

Amounts reflected in a company's financial records that represent the owner's investment in the business.

Cash Equals

Refers to the value of assets within a company that are in liquid form and can be readily converted to cash.

Share Income

Income earned by shareholders from their investments in a company, often referred to as dividends.

Capital Balances

The amount of money that each partner in a partnership has contributed and retains in the business.