The demand for loanable funds is
A) savings,because households borrow more than firms.
B) horizontal,because firms are infinitely sensitive to interest rates.
C) vertical,because it is nonresponsive to interest rates.
D) upward sloping,because at higher interest rates the opportunity cost of holding money increases.
E) investment,because firms are (on the aggregate) net borrowers.
Correct Answer:
Verified
Q1: Refer to the following graph to answer
Q2: The interest rate is
A) the price of
Q3: The timeline of production indicates that
A) supply
Q4: Refer to the following graph to answer
Q6: The notion of the loanable funds market
Q7: Refer to the following graph to answer
Q8: Foreign entities
A) are generally borrowers of domestic
Q9: The concept of the loanable funds market
Q10: The supply of loanable funds comes from
A)
Q11: Every dollar borrowed
A) represents a dollar leaving
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