A decrease in the supply of loanable funds and an increase in the demand for loanable funds will:
A. Increase the interest rate and the quantity of funds loaned
B. Decrease the interest rate and the quantity of funds loaned
C. Increase the interest rate, but the quantity of funds loaned may either increase or decrease
D. Decrease the interest rate, but the quantity of funds loaned may either increase or decrease
C. Increase the interest rate, but the quantity of funds loaned may either increase or decrease
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According to the principle of marginal productivity, the quantity of an input demanded depends on the
a. price of the input. b. price of outputs in which the input is used. c. technology of production. d. All of the above are correct.
If the underground economy is sizable, then GDP will:
a. accurately reflect this subterranean activity. b. overstate the economy's performance. c. understate the economy's performance. d. fluctuate unpredictably.
When consumer spending and consumption decrease, consumer confidence tends to
A. fall. B. rise. C. remain the same. D. be unpredictable.
Feudalism and mercantilism relied on markets to solve the three main coordination problems.
Answer the following statement true (T) or false (F)