In the Loanable Funds Market

question 299

Multiple Choice

In the loanable funds market,

• A) when interest rates are higher, businesses borrow more money for investment.
• B) when interest rates are higher, consumers borrow more money for mortgages.
• C) an increase in consumer savings causes the interest rate to rise.
• D) savers are the demanders, and borrowers are the suppliers.
• E) businesses do most of the borrowing to finance investment spending on new factories.

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Definitions:

Testcross

A genetic cross between a homozygous recessive individual and an organism of unknown genotype, to determine the unknown organism’s genotype based on the offspring’s phenotypes.

Homozygous Recessive

Referring to an individual carrying two copies of a recessive allele for a particular trait, which will be expressed in the organism's phenotype.

Dominant Trait

A genetic trait that is expressed in an organism even when only one copy of the gene responsible for the trait is present.

CFTR Gene

A gene that provides instructions for making a protein that acts as a channel for the movement of chloride ions across cell membranes, mutations of which can lead to cystic fibrosis.