If consumers decide to increase their rate of saving, the
a. supply of loanable funds will decrease
b. supply of loanable funds will increase
c. demand for loanable funds will decrease
d. demand for loanable funds will increase
e. interest rate will increase
B
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The market demand curve for a particular good
A) is the horizontal sum of all individual demand curves for the good. B) may be less than an individual demand curve for the good. C) may or may not show a direct relationship between price and quantity demanded. D) will not be affected by any of the determinants of individual demand.
The level of output at which marginal revenue equals zero is also the level of output at which a. total revenue is zero
b. profit is maximized. c. total revenue is maximized. d. total revenue is declining.
The simple quantity theory of money predicts that changes in
A) the money supply lead to strictly proportional changes in the price level. B) the money supply do not affect the price level. C) the price level lead to strictly proportional changes in velocity and GDP. D) velocity lead to nearly proportional changes in the money supply.
According to the law of demand, quantity demanded decreases as ________, ceteris paribus.
A. prices fall B. demand decreases C. demand increases D. prices rise