If the interest rate increases, then
A) households will decrease their level of saving.
B) the supply of loanable funds will fall because it now costs more to borrow funds and people who were supplying the funds will realize that fewer people will be willing to borrow their funds.
C) households will consume less and save more.
D) government will consume more because it now costs more to borrow funds to buy goods.
E) a, b, and d
Correct Answer:
Verified
Q22: Roundabout methods of production are said to
Q23: Which of the following statements is true?
A)All
Q24: The supply of loanable funds depends most
Q25: Loanable funds are
A)another term for capital.
B)a particular
Q26: Which of the following statements is false?
A)The
Q28: The people most likely to save are
Q29: As the interest rate falls,
A)the quantity demanded
Q30: The supply curve of loanable funds is
Q31: As the interest rate (price for loanable
Q32: If the price for loanable funds is
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