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When Saving (The Supply of Loanable Funds) Increases as the Interest

question 138

Multiple Choice

When saving (the supply of loanable funds) increases as the interest rate increases, an increase in investment demand results in a ______ interest rate and ______ in the quantity of investment.


Definitions:

Cleavage

A property of minerals that allows them to break along smooth, flat surfaces, determined by the mineral's crystal structure.

Columnar Joints

Natural formations resulting from the cooling and cracking of volcanic rock into nearly hexagonal columns.

Finely Crystalline

Describes a rock texture that consists of small, closely-packed crystals not easily visible to the naked eye.

Calcite

A common mineral form of calcium carbonate, critical in the formation of limestone and marble, and involved in many geological processes.

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