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.
Answer: A
Economics
You might also like to view...
Advertising can play a major role in shaping the intangible preferences that result in consumer loyalty
a. True b. False Indicate whether the statement is true or false
Economics
What does the term "marginal" mean in economics?
A) the edge of a market B) an additional or extra C) illegal D) secondary E) trivial
Economics