The supply of loanable funds slopes
a. upward because an increase in the interest rate induces people to save more.
b. downward because an increase in the interest rate induces people to save less.
c. downward because an increase in the interest rate induces people to invest less.
d. upward because an increase in the interest rate induces people to invest more.
a
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Which of the following is a liability on the balance sheet of the Federal Reserve System?
A) currency B) U.S. government securities C) mortgage-backed securities D) None of the above are correct because they are all assets of the Federal Reserve.
Arthur Burns and Wesley Mitchell first described business cycles as ________
A) fluctuations in consumer preferences B) fluctuations in the price of bicycles C) fluctuations in aggregate economic activity D) all of the above E) none of the above