Which of the following is least likely to affect household demand for loanable funds?
A)a decrease in tax rates
B)an increase in interest rates
C)a reduction in available projects with an expected high rate of return
D)All of these are equally likely to affect household demand for loanable funds.

Question

Quizplus · Accepted Answer

Household demand for loanable funds is primarily influenced by interest rates and tax rates, as these directly affect borrowing costs and disposable income. A reduction in available projects with a high rate of return is more relevant to business investment decisions rather than household borrowing.

Which of the Following Is Least Likely to Affect Household