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Refer to the Market for Loanable Funds, as Shown in the Graph

Question 165

Multiple Choice

  Refer to the market for loanable funds, as shown in the graph. A decline in the interest rate is likely to A) lower capital investment. B) increase the quantity of loanable funds demanded. C) come about when there is a shortage of loanable funds. D) result from an increase in the desire of firms to borrow funds. Refer to the market for loanable funds, as shown in the graph. A decline in the interest rate is likely to


A) lower capital investment.
B) increase the quantity of loanable funds demanded.
C) come about when there is a shortage of loanable funds.
D) result from an increase in the desire of firms to borrow funds.

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