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Quiz 4: The Level of Interest Rates
An Increase in Rates of Return on Real Capital Investment
Question 12
True False
An increase in rates of return on real capital investment will increase real interest rates.
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Related questions
Q 13
An increase in the desired saving rate will increase real interest rates.
Q 14
Deficit spending units supply loanable funds.
Q 15
If yields on thirty-year U. S. Treasury bonds are 8% and the real rate of interest is estimated at 3%, the historical rate of inflation is 5%.
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