The demand for funds resulting from business investment in new projects is ____ related to the number of projects implemented, and is therefore ____ related to the interest rate.
A)inversely; positively
B)positively; inversely
C)inversely; inversely
D)positively; positively

Question

Quizplus · Accepted Answer

The demand for funds increases with the number of projects (positively related), but as interest rates rise, the cost of borrowing increases, making fewer projects financially viable, thus demand for funds decreases (inversely related).

The Demand for Funds Resulting from Business Investment in New