Author Question: Incentives for borrowers and savers in the loanable funds market are determined by the nominal ... (Read 47 times)

amal · **on:** Jun 30, 2018

Incentives for borrowers and savers in the loanable funds market are determined by the nominal interest rate as opposed to the real interest rate.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Consider a demand curve for peaches. Which of the following movements will be observed if the price of peaches decline at a point in time?
a. The demand curve will rotate inward at the given price level.
b. The will be a movement up along the demand curve.
c. The demand curve will rotate outward at the given price level.
d. There will be a downward movement along the demand curve.
e. The demand curve will become steeper.