Figure 26-4

question 51

Multiple Choice

Figure 26-4.On the horizontal axis of the graph,L represents the quantity of loanable funds in billions of dollars.
-Refer to Figure 26-4.If the equilibrium quantity of loanable funds is $56 billion and if the rate of inflation is 5 percent,then the equilibrium nominal interest rate is

• A)11 percent.
• B)approximately 6 percent.
• C)between 6 percent and 8 percent.
• D)between 11 percent and 13 percent.

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Definitions:

Tort of Assault

A legal claim for harm caused by intentionally placing another person in fear of imminent physical harm or offensive contact.

Intentional Tort

A civil wrong resulting from an intentional act committed on the person, property, or economic interest of another. Intentional torts include assault, battery, conversion, false imprisonment, intentional infliction of emotional distress, trespass to land, and trespass to chattels.

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances, often resulting in harm or damage.

Strict Liability

Legal responsibility for damages or harm caused by actions or products, regardless of fault or intention.