An increase in the demand for loanable funds will, everything else equal,

a. increase the supply of funds
b. lower the interest rate and reduce investment spending
c. lower the interest rate and increase investment spending
d. raise the interest rate and reduce investment spending
e. raise the interest rate and increase investment spending


E

Economics

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As a means of gaining monopoly power, holding companies were preferable to gentlemen's agreements and pooling because

a. holding companies did not have an adverse impact on employment. b. holding companies were able to reduce competition from imported goods. c. holding companies were legal in most states. d. holding companies were not subject to corporate profits taxes.

Economics

Linda's Autoplex performs oil changes on automobiles, light trucks, and sport utility vehicles. She is a profit-maximizing business owner whose firm operates in a competitive market. The marginal cost of an oil change is $10 . The marginal productivity of the last worker that Linda hired was 1.5 oil changes per hour. What is the maximum hourly wage that Linda was willing to pay the last worker

hired? a. $10 b. $15 c. $20 d. $30

Economics

In a competitive market illustrated by the diagram below, for a price floor to be effective and alter the market situation, it must be set:



A. At $15
B. Below $15
C. Above $15
D. At $10

Economics

An exchange rate that is set by official government policy is called a ________ exchange rate.

A. nominal B. flexible C. real D. fixed

Economics