In the loanable funds market, the demand for loanable funds is negatively sloped because the higher the real interest rate, the:
A) smaller the benefits of saving.
B) lower the profitability of investment projects.
C) higher the profitability of investment projects.
D) greater the benefits of saving.
Correct Answer:
Verified
Q65: The loanable funds market is the market
Q66: The borrowers in the loanable funds market
Q67: The suppliers in the loanable funds market
Q68: In the loanable funds market, the demand
Q69: In the loanable funds market, the supply
Q71: In the loanable funds market, the supply
Q72: If the nominal interest rate in the
Q73: If the government lowers the corporate tax
Q74: If the government institutes a tax credit
Q75: If a country experiences a lot of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents