Scatter diagrams of money growth rates and inflation rates between 1982 and 2010 show a clear relationship of cause and effect
a. True
b. False
Indicate whether the statement is true or false
False
Economics
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Other things remaining the same, as the real interest rate increases,
A) firms will borrow more funds. B) firms' demand for funds will not change. C) the demand for loanable funds curve shifts leftward. D) firms will purchase new capital with its own funds instead of taking a loan. E) firms will borrow less funds.
Economics
Other things remaining the same, the ________ the real interest rate, the ________
A) higher; greater the demand for loanable funds B) higher; greater the quantity of loanable funds demanded C) lower; greater the quantity of loanable funds demanded D) lower; greater the demand for loanable funds E) lower; greater the quantity of loanable funds supplied
Economics