The demand for loanable funds is downsloping
A) because businesses find that more investments are profitable at low interest rates than at high interest rates.
B) because households are willing to save more at high interest rates than at low interest rates.
C) only when the nominal interest rate exceeds the real interest rate.
D) because the amount of profitable business investment varies directly with the interest rate.
Correct Answer:
Verified
Q21: In the market for loanable funds,
A) an
Q22: The fact that people prefer present consumption
Q23: Suppose a person pays $80 of annual
Q24: If Congress were to pass a law
Q25: Which of the following is not a
Q27: Critics of a single tax on land
Q28: The "time-value of money" refers to the
Q29: "Present value" refers to the
A) value today
Q30: The equilibrium interest rate equates
A) nominal and
Q31: Interest is the
A) price paid for the
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