If the real risk-free interest rate falls, the:
a. Demand curve for real loanable funds rises.
b. Demand curve for real loanable funds falls.
c. Supply curve of real loanable funds rises.
d. None of the above.
.D
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The presence of transactions costs and information costs
A) lowers the cost of funds to borrowers. B) raises the expected return to lenders. C) lowers the expected return to lenders. D) increases the efficiency of the financial system.
An appreciation of the exchange value of the U.S. dollar would:
a. increase the dollar prices of U.S. imports and the foreign cost of exports from the U.S b. decrease the dollar prices of U.S. imports and the foreign cost of exports from the U.S. c. increase the dollar prices of U.S. imports, but decrease the foreign cost of exports from the U.S. d. decrease the dollar prices of U.S. imports, but increase the foreign cost of exports from the U.S.