Asked by labiba rabbi on Jun 09, 2024
Verified
On a graph that depicts the market for loanable funds, the nominal interest rate is measured along the vertical axis.
Market For Loanable Funds
The market in which those who want to save supply funds and those who want to borrow to invest demand funds.
Nominal Interest Rate
The rate of interest charged on a loan or paid on an investment without adjustment for inflation.
- Investigate the influence of fiscal policy measures on loanable funds, interest rate fluctuations, and investment activities.
Verified Answer
JF
Jennifer FaganJun 16, 2024
Final Answer :
False
Explanation :
On a graph that depicts the market for loanable funds, the real interest rate is typically measured along the vertical axis, not the nominal interest rate. The real interest rate adjusts the nominal rate for the effects of inflation.
Learning Objectives
- Investigate the influence of fiscal policy measures on loanable funds, interest rate fluctuations, and investment activities.
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