The demand for loanable funds is downsloping
A) because businesses find that more investments are profitable at low interest rates than at high interest rates.
B) because households are willing to save more at high interest rates than at low interest rates.
C) only when the nominal interest rate exceeds the real interest rate.
D) because the amount of profitable business investment varies directly with the interest rate.
Correct Answer:
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Q144: A firm wants to borrow funds to
Q145: Q146: Which factor will decrease the demand for Q147: In the market for loanable funds, Q148: The demand curve for loanable funds represents Q150: A firm considering whether to borrow money Q151: The supply curve of loanable funds is Q152: The loanable funds theory of interest shows Q153: The fact that people prefer present consumption Q154: ![]()
A)an increase![]()
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