Solved

The Table Shows the Projected Rate of Return and Number

Question 157

Multiple Choice

The table shows the projected rate of return and number of investment projects that might be undertaken by a small firm. Each project requires an investment of $1,000. If the interest rate decreases from 25 percent to 20 percent, the quantity of loanable funds demanded by this firm A) increases by $1,000. B) increases by $3,000. C) decreases by $3,000. D) decreases by $4,000. The table shows the projected rate of return and number of investment projects that might be undertaken by a small firm. Each project requires an investment of $1,000. If the interest rate decreases from 25 percent to 20 percent, the quantity of loanable funds demanded by this firm


A) increases by $1,000.
B) increases by $3,000.
C) decreases by $3,000.
D) decreases by $4,000.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q152: The loanable funds theory of interest shows

Q153: The fact that people prefer present consumption

Q154: The table shows</p></div><svg width=

Q155: Refer to the</p></div><svg width=

Q156: Refer to the</p></div><svg width=

Q158: Other things equal, an increase in the

Q159: Which of the following is not a

Q160: If Congress were to pass a law

Q161: Which of the following will increase the

Q162: The schedule shows</p></div><svg width=

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents