The fact that there are fewer and fewer potential investments that will generate returns high enough to make the cost of paying back a loan worthwhile is reflected in the:
A. upward-slope of the supply curve in the market for loanable funds.
B. downward-slope of the supply curve in the market for loanable funds.
C. upward-slope of the demand curve in the market for loanable funds.
D. downward-slope of the demand curve in the market for loanable funds.
D. downward-slope of the demand curve in the market for loanable funds.
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Refer to above figure. What happens to the Consumer Surplus of Hungarian customers as a result of this subsidy?
What will be an ideal response?
The opportunity cost of holding money is measured by:
A) short-term nominal interest rate B) short-term real interest rate C) long-term nominal interest rate D) long-term real interest rate
Whenever there is an increase in autonomous consumption spending, there will be
a. an upward shift of the aggregate expenditure line causing equilibrium GDP to rise b. an upward shift of aggregate expenditure line, but no change in equilibrium GDP c. no change in the aggregate expenditure line, but equilibrium GDP will rise d. an upward shift of the aggregate expenditure line, causing equilibrium GDP to fall e. no change in the aggregate expenditure line or equilibrium GDP
An increase in the interest rate __________ purchases of consumer __________
A) increases; durables B) increases; nondurables C) reduces; durables D) reduces; nondurables