Refer to the market for loanable funds, as shown in the above graph. A decline in the interest rate is likely to:


A. Lower capital investment

B. Increase the quantity of loanable funds demanded

C. Come about when there is a shortage of loanable funds

D. Result from an increase in the desire of firms to borrow funds

B. Increase the quantity of loanable funds demanded

Economics

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"Economists assume people are selfish." Do you agree with this statement or not? Explain

What will be an ideal response?

Economics

The consumer price index includes all of the following goods and services except

a. bonds of US corporations b. French wine c. Japanese VCRs d. used cars e. toiletries

Economics