If interest rates fall,
A)the demand curve for loans will shift out.
B)the discounted value now of money to be received in the future will fall.
C)some previously unprofitable prospective investments will become profitable.
D)the supply curve for loanable funds will shift in.

Question

Quizplus · Accepted Answer

When interest rates fall, the cost of borrowing decreases, making some investments that were not profitable at higher interest rates now profitable due to lower financing costs.

If Interest Rates Fall