What are the sources of the demand for loanable funds? What happens to the quantity of loanable funds demanded when the interest rate rises?
The sources of the demand for loanable funds are domestic investment and net capital outflow. The quantity of loanable funds demanded falls as the interest rate rises.
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If the market demand curve in a perfectly competitive industry shifts right, the demand curve for each existing firm will: a. shift up
b. shift down. c. shift right. d. shift left.
A price/earnings ratio is the price of a stock divided by the earnings per share.
Answer the following statement true (T) or false (F)
When a minimum-wage law forces the wage to remain above the equilibrium level, it
a. raises both the quantity of labor supplied and the quantity of labor demanded compared to the equilibrium level. b. raises the quantity of labor supplied and reduces the quantity of labor demanded compared to the equilibrium level. c. reduces the quantity of labor supplied and raises the quantity of labor demanded compared to the equilibrium level. d. reduces both the quantity of labor supplied and the quantity of labor demanded compared to the equilibrium level.
Consider demand curve D in Figure 5-2. Between points F and G, the price elasticity of demand is
Figure 5-2
a.
1
b.
0.5
c.
2
d.
0.2
e.
none of these