The supply curve of loanable funds is upsloping because
A) businesses find more investments to be profitable at low interest rates than at high interest rates.
B) government budget deficits vary inversely with the equilibrium interest rate.
C) households are willing to save more at high interest rates than they are at low interest rates.
D) banks lend more at low interest rates than they do at high interest rates.
Correct Answer:
Verified
Q146: Which factor will decrease the demand for
Q147: In the market for loanable funds,
A)an increase
Q148: The demand curve for loanable funds represents
Q149: The demand for loanable funds is downsloping
A)because
Q150: A firm considering whether to borrow money
Q152: The loanable funds theory of interest shows
Q153: The fact that people prefer present consumption