Refer to the market for loanable funds, as shown in the above graph. A decline in the interest rate is likely to:
A. Lower capital investment
B. Increase the quantity of loanable funds demanded
C. Come about when there is a shortage of loanable funds
D. Result from an increase in the desire of firms to borrow funds
B. Increase the quantity of loanable funds demanded
You might also like to view...
Credit cards are i. a generally accepted form of payment and therefore part of M1. ii. included in M1 because you write a check to pay your monthly bill. iii. a means of borrowing money
A) i only B) ii only C) iii only D) i and ii E) i and iii
________ behavioral assumption about humans was that people usually act in a rational, self-interested way
A) Adam Smith's B) Janet Yellen's C) Karl Marx's D) Thomas Malthus's
The slope of a (nonlinear) curve varies from one point to another
Indicate whether the statement is true or false
Holding money for the speculative motive is holding cash for unexpected events.
Answer the following statement true (T) or false (F)