In the market for loanable funds, the rate of return describes the:
A) expected profit a project will generate per dollar invested.
B) cost of borrowing.
C) interest rate on loans.
D) frequency with which reinvestment can occur.

Question

Quizplus · Accepted Answer

The rate of return in the context of the market for loanable funds primarily refers to the expected profit a project will generate for each dollar invested, which influences investment decisions and demand for loans.

In the Market for Loanable Funds, the Rate of Return