What happens to the amount of funds supplied to the loanable funds market when the interest rate decreases?

a) The amount of loanable funds supplied decreases.
b) The amount of loanable funds supplied increases.
c) The amount of loanable funds supplied stays the same.
d) The amount of loanable funds supplied falls to zero when the interest rate decreases

Ans: a) The amount of loanable funds supplied decreases.

Economics

You might also like to view...

The minimum point of a U-shaped curve

A) is a point where the variable is neither increasing nor decreasing. B) has a slope equal to zero. C) has the maximum slope possible. D) Both answers A and B are correct. E) Both answers A and C are correct.

Economics

As the central bank, the Federal Reserve System provides banking services to

A) banks and regulates financial institutions and markets. B) foreign corporations and determines the exchange rate. C) the government and the stock market. D) individuals and controls the quantity of money. E) banks and determines how much the U.S. government will borrow.

Economics