Which of the following will happen if the supply of loans increases?
A. The interest rate will rise, and the quantity of money borrowed will decline.
B. The interest rate will fall, and the quantity of money borrowed will increase.
C. The interest rate will fall, and the quantity of money borrowed will decline.
D. The interest rate will rise, and the quantity of money borrowed will increase.
Answer: B
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Suppose a firm acts to minimize the cost of producing 500 units of output and determines this cost to be $25,000. Then, if the firm acts to maximize output for a total cost of $25,000, the maximum output attainable is
A) 500. B) less than 500. C) more than 500. D) unknown.
A. it is impossible to produce more consumer goods. B. resources cannot be reallocated between the two goods. C. it is impossible to produce more capital goods. D. more consumer goods can only be produced at the cost of fewer capital goods
A. the quantities of all resources are unlimited. B. technology is fixed. C. some resources are unemployed. D. there is no inflation in the economy.