Multiple Choice
A stable equilibrium interest rate in the loanable funds market requires that:
A) Planned saving equals planned investment
B) Money supply equals money demand
C) Quantity of loanable funds supplied equals quantity of loanable funds demanded
D) Difference between foreign demand for loanable funds and volume of loanable funds supplied by foreigners to the domestic economy equals the difference between current exports from and imports into the domestic economy
E) All of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q69: According to the Rational Expectations Theory, if
Q70: The motive for holding money to purchase
Q71: Equilibrium in the money market requires the
Q72: The Classical theorists believed that the demand
Q73: Suppose the interest rate grows from 6
Q75: What determines the equilibrium interest rate under
Q76: The money and capital markets make a
Q77: According to the rational expectations view of
Q78: When U.S. interest rates decline relative to
Q79: The increased foreign supply of loanable funds