Other Things the Same, When the Interest Rate Rises

question 27

Multiple Choice

Other things the same, when the interest rate rises

• A) people would want to lend more, making the supply of loanable funds increase.
• B) people would want to lend less, making the supply of loanable funds decrease.
• C) people would want to lend more, making the quantity of loanable funds supplied increase.
• D) people would want to lend less, making the quantity of loanable funds supplied decrease.

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Definitions:

Contact Metamorphism

Metamorphism that occurs when rock is heated and chemically altered by the close proximity of magma.

Extension

A geological process in which the Earth's crust is stretched, leading to the formation of faults and rift valleys.

Normal Faulting

A type of fault where the hanging wall slides downward; caused by tension in the crust.

Foliation

The repetitive layering in metamorphic rocks caused by the reorientation of minerals under directional pressure.