An Increase in the Real Interest Rate Results in Which

question 101

Multiple Choice

An increase in the real interest rate results in which of the following?

• A)an increase in the demand for loanable funds
• B)a decrease in the demand for loanable funds
• C)an increase in the quantity of loanable funds supplied
• D)Both B and C will occur as a result of an increase in the real interest rate.

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Definitions:

Gabriel's Rebellion

An 1800 slave revolt in Richmond, Virginia, led by Gabriel Prosser, that aimed to gain freedom for African-American slaves but was suppressed before it could be fully executed.

Illiterate Field Hands

Agricultural workers, often slaves or laborers in later periods, who could not read or write, common on plantations and farms historically.

Negotiate

The process of discussing something with someone in order to reach an agreement or mutual understanding.

Plains of Chalmette

The site of the Battle of New Orleans in 1815, a significant American victory at the end of the War of 1812.