An Increase in the Demand for Loanable Funds Will Occur

question 184

Multiple Choice

An increase in the demand for loanable funds will occur if there is

• A)an increase in the real interest rate.
• B)a decrease in the real interest rate.
• C)an increase in expected profits from firm investment projects.
• D)an increase in the nominal interest rate accompanied by an equal increase in inflation.

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Definitions:

Binge Drinking

The consumption of an excessive amount of alcohol in a short period of time, often leading to acute intoxication.

Drinks

Refers broadly to any liquid that is consumed including water, alcohol, sodas, and juices.

Child Abuse

The physical, emotional, sexual, or neglectful maltreatment of a child by a caretaker.

Neglect

The failure to provide adequate care, attention, or support to someone or something, resulting in harm or deterioration.