Figure 29-1

-In Figure 29-1, which panel shows the effect of a recession on the interest rate?
A)Panel (B)Panel (
C)Panel (
D)Panel (

Name: Figure 29-1 -In Figure 29-1, which panel shows the effect of a recession on the interest rate? A)Panel (B)Panel ( C)Panel ( D)Panel (
Brand: Quizplus
Rating: 4.9 (43 reviews)

Question

Figure 29-1
​ 
-In Figure 29-1, which panel shows the effect of a recession on the interest rate?
A)Panel (B)Panel (
C)Panel (
D)Panel (

Quizplus · Accepted Answer

Panel (C) shows the effect of a recession on the interest rate. During a recession, the demand for loanable funds decreases, which leads to a decrease in the interest rate.

Figure 29-1 ​

Figure 29-1