Multiple Choice
Which of the following statements describes a role performed by the rate of interest in the economy?
A) Facilitates that current savings will flow into investment to promote economic growth
B) Allocates the available supply of credit, generally providing loanable funds to projects bearing the highest expected returns
C) Brings the nation's money supply into balance with the demand for money
D) Serves as a tool of government economic policy
E) All of the above represent roles of the rate of interest in the economy
Correct Answer:

Verified
Correct Answer:
Verified
Q6: Gross investment equals net investment minus replacement
Q7: According to the classical theory of interest,
Q8: A government securities dealer buys a 12
Q9: Using each of the sentences or phrases
Q10: According to the long-run view of interest
Q12: The theory of interest which assumes that
Q13: In the loanable funds theory the demand
Q14: The theory which argues that the risk-free
Q15: Equilibrium in the foreign currency markets means
Q16: A stable equilibrium interest rate in the