In the classical model, an increase in saving is assumed to increase
a. the demand for loanable funds, which decreases interest rates.
b. the supply of loanable funds, which decreases interest rates.
c. both the demand for money and loanable funds, which reduces interest rates.
d. neither the demand for money nor bonds, leaving interest rates unchanged.
B
Economics
You might also like to view...
A person who is risk-neutral will
A) pay a small risk premium when making a choice. B) pick a slightly less risky option with a slightly lower expected value. C) pick the option with the highest expected value. D) None of the above.
Economics
Refer to the above table. At a price of $450, there is an
A) equilibrium. B) excess quantity supplied of 4,000 tablets. C) excess quantity demanded of 6,000 tablets. D) excess quantity demanded of 9,000 tablets.
Economics