The demand to borrow function shows the relationship between borrowing money and:
A) consumption.
B) income.
C) age.
D) the interest rate.

Question

Quizplus · Accepted Answer

The demand to borrow function primarily shows the relationship between the amount of money individuals or entities wish to borrow and the interest rate. Lower interest rates generally increase the demand for borrowing as it becomes cheaper to borrow money for investments, purchases, or other financial needs.

The Demand to Borrow Function Shows the Relationship Between Borrowing