When there is a fixed supply of loanable funds, an increase in investment demand results in a(n) :
A) higher interest rate.
B) lower interest rate.
C) increase in investment.
D) decrease in investment.
Correct Answer:
Verified
Q117: Use the following to answer questions :
Exhibit:
Q118: Use the following to answer questions
Q119: The reduction in investment brought about by
Q120: Crowding out occurs when an increase in
Q121: If increased immigration raises the labor force,
Q123: Use the model developed in Chapter 3,
Q124: Use the following to answer questions :
Exhibit:
Q125: The government raises lump-sum taxes on income
Q126: An example of decreasing returns to scale
Q127: The government raises lump-sum taxes on income
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