In countries with rapidly growing economies, like China and India, the demand for loanable funds is _____ and interest rates are _____ than in countries with slowly growing economies.

Question

Quizplus · Accepted Answer

In countries with rapidly growing economies, the demand for loanable funds is larger because businesses need more investment to expand their operations. This increased demand for funds causes interest rates to be higher as lenders can charge more for the use of their funds.

In Countries with Rapidly Growing Economies, Like China and India