If the desire for present consumption by individuals and households increases,the supply of loanable funds will
A) shift to the right, causing the interest rate to rise.
B) shift to the right, causing the interest rate to fall.
C) shift to the left, causing the interest rate to fall.
D) shift to the left, causing the interest rate to rise.
E) be unaffected, but the demand for loanable funds will fall.
Correct Answer:
Verified
Q2: Small loans carry higher interest rates than
Q3: If the permanent annual rate of return
Q4: To shift the supply of loanable funds
Q5: The pure rate of interest is the
A)
Q6: The distinction between the pure rate of
Q8: The primary function of interest rates is
Q9: If a surge of new inventions results
Q10: The equilibrium rate of interest is
A) determined
Q11: The rate of return on an asset
Q12: The demand curve for loanable funds slopes
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