If Saving Exceeds Investment Demand, and Consumption Is Not a Function

question 124

Multiple Choice

If saving exceeds investment demand, and consumption is not a function of the interest rate:

• A) the demand for loans exceeds the supply of loans.
• B) the interest rate will fall.
• C) the interest rate will rise.
• D) saving will fall.

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Definitions:

Magnetic Field

A field around a magnetic material or a moving electric charge within which the force of magnetism acts.

Law of Charges

A fundamental principle stating that like charges repel and opposite charges attract, with the force of attraction or repulsion decreasing with distance.

Like Polarity

Term referring to the same electrical charge or magnetic direction between two points or objects.

Unlike Polarity

Refers to the condition where two or more magnetic or electrical fields have orientations that are opposite to each other.