Based on the graph showing the market for loanable funds, what will happen at a real interest rate that is lower than equilibrium?
a. Lenders will compete for borrowers and interest rates will fall.
b. Lenders will compete for borrowers and interest rates will raise.
c. Borrowers will compete for loans and interest rates will fall.
d. Borrowers will compete for loans and interest rates will rise.
d. Borrowers will compete for loans and interest rates will rise.
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Indicate whether the statement is true or false
An increase in the demand for loanable funds will occur if there is
A) an increase in the real interest rate. B) an increase in the nominal interest rate accompanied by an equal increase in inflation. C) a decrease in the real interest rate. D) an increase in expected profits from firm investment projects.
When a product transformation curve for a firm is bowed inward, there are ________ in production
A) economies of scope B) economies of scale C) diseconomies of scope D) diseconomies of scale
If the death of an owner causes the firm to dissolve, the firm must have been
A) a partnership only. B) a proprietorship only. C) a corporation only. D) either a proprietorship or a partnership.