
-A shortage of savings in the loanable funds market will:
A) drive market interest rates down.
B) drive market interest rates up.
C) increase the supply of loanable funds.
D) increase the demand for loanable funds.
Correct Answer:
Verified
Q81: Use the following to answer questions
Figure:
Q82: Q83: Use the following to answer questions Q84: At an interest rate of 8%,borrowers' demand Q85: If the interest rate rises from 5% Q87: The demand to borrow function is: Q88: Use the following to answer questions Q89: If the supply of loanable funds decreases,ceteris Q90: Which variable is determined in the market Q91: If the demand for loanable funds decreases,ceteris![]()
Figure:
A) upward
Figure:
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