Multiple Choice
The government
A) sets most interest rates.
B) is a net lender (or supplier of loanable funds) .
C) is a net borrower (or demander of loanable funds) .
D) determines the "federal risk premium" portion of commercial interest rates.
E) earns more interest on treasury securities when interest rates rise.
Correct Answer:

Verified
Correct Answer:
Verified
Q33: The interest rate is<br>A) a cost to
Q34: If the federal government taxes the interest
Q35: If a depositor puts money in the
Q36: Every dollar borrowed<br>A) represents a dollar leaving
Q37: What is the effect of a decrease
Q39: Assuming inflation is positive,the real interest rate<br>A)
Q40: If real interest rates fell between 1981
Q41: Assume inflation is occurring in a nation;
Q42: The demand for loanable funds increases while
Q43: Melvin begins his retirement fund at age