In the long-run, according to loanable funds theory, the real interest rate is determined by

A. saving and investment
B. demand and supply for money
C. demand and supply for labor
D. aggregate demand and supply

Ans: A. saving and investment

Economics

You might also like to view...

When economists model a game with three players instead of two, what is different about the payoff matrix and the payoffs listed in each cell of the matrix?

What will be an ideal response?

Economics

Of the following sequences of price levels, which CORRECTLY represents a 5 percent inflation rate?

A) 100, 100, 100, 100 B) 100, 105, 105, 105 C) 100, 105, 110, 115 D) 100, 105, 110.25, 115.76

Economics