The demand for loanable funds increases while the supply of loanable funds remains constant.This would cause
A) the equilibrium quantity of loanable funds to decrease and the equilibrium interest rate to increase.
B) the equilibrium quantity of loanable funds to increase and the equilibrium interest rate to decrease.
C) both the equilibrium quantity of loanable funds and the equilibrium interest rate to increase.
D) the equilibrium interest rate to decrease,but the equilibrium quantity of loanable funds would remain unchanged.
E) the equilibrium interest rate to increase,but the equilibrium quantity of loanable funds would remain unchanged.
Correct Answer:
Verified
Q112: Assume foreign incomes rise.Ceteris paribus (all things
Q113: The demand and supply of loanable funds
Q114: The demand for loanable funds increases while
Q115: The measurement of personal savings may be
Q116: Equilibrium in the loanable funds market means
Q118: Firms expect more sales and profits in
Q119: The demand for loanable funds increases by
Q120: If people have more equity in their
Q121: A profit-maximizing firm will borrow money at
Q122: Why does the demand curve for loanable
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents