If a surge of new inventions results in many profitable investment opportunities,the demand for loanable funds will
A) shift to the left, causing the interest rate to fall.
B) shift to the left, causing the interest rate to rise.
C) shift to the right, causing the interest rate to rise.
D) shift to the right, causing the interest rate to fall.
E) be unaffected, but the supply of loanable funds will rise.
Correct Answer:
Verified
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
Q7: If the desire for present consumption by
Q8: The primary function of interest rates is
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
Q13: As the degree of risk connected with
Q14: Interest rates
A) help ensure that only those
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