The demand for loanable funds curve slopes downward because the
A) price of bonds and stocks is not related to the real interest rate.
B) real interest rate is the opportunity cost of investment.
C) expected rate of profit is factor that "rewards" firms for their investment.
D) higher the real interest rate, the lower the cost of investment.
E) expected rate of profit is related positively to the real interest rate.
Correct Answer:
Verified
Q42: If the real interest rate is less
Q43: Q44: Q45: Which of the following occurs if the Q46: If a surplus of loanable funds exists Q48: Net investment is Q49: U.S. capital at the end of 2012 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
A)the same as depreciation.
B)gross investment