The source of the supply of loanable funds is
a. saving, and the source of the demand for loanable funds is investment.
b. consumption, and the source of the demand for loanable funds is investment.
c. investment, and the source of the demand for loanable funds is saving.
d. the interest rate, and the source of the demand for loanable funds is saving.
a
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Suppose the Fed decreases the money supply. In response households and firms will ________ short term assets and this will drive ________ interest rates
A) sell; down B) buy; down C) sell; up D) buy; up
Which of the following would lead to a rightward movement along the demand curve for British pounds?
a. An increase in the dollar price of a pound b. A decrease in U.S. GDP c. A renewed interest in British beef products d. A decrease in the dollar price of a pound e. An increase in U.S. GDP.
The price rationing mechanism of a freely functioning market leads to the most efficient use of resources because
A. all gains from mutually beneficial trade are captured. B. the government regulates the market. C. the Supreme Court determines market activities. D. of the rise of the legislative apparatus that supports trade.
The CIO was formed as a(n)
A) closed shop. B) association of industrial unions. C) union shop. D) bilateral monopoly.