In the loanable funds market,
A. The price is the interest rate.
B. The supply curve reflects the behavior of borrowers.
C. If interest rates rise, firms borrow more.
D. The demand curve reflects the behavior of lenders.
Answer: A
Economics
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a. the money multiplier is greater than one b. excess reserves are equal to zero c. required reserves are equal to 100 percent d. banks can loan out only their required reserves e. the money multiplier must be equal to zero
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In the absence of externalities, the optimal distribution of resources occurs when production is at
a. P = MC b. P = ATC c. TR = TC d. MC = MR e. P = AFC
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