An increase in the interest rate, other things constant, will:
a. shift the supply of loanable funds curve to the left.
b. shift the supply of loanable funds curve to the right.
c. increase the quantity of loanable funds supplied
d. shift the demand for loanable funds curve to the left.
e. increase the quantity of loanable funds demanded.
c
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The slope of the consumption function is called the:
a. autonomous consumption rate. b. marginal consumption rate. c. average propensity to consume. d. marginal propensity to consume.
If an airline company has several empty seats on a flight and the full price of an air ticket is $500 and the marginal cost per passenger is $100, then it will be profitable for the airline to
a. charge a stand-by passenger no less than the full fare of $500. b. charge a stand-by passenger less than $100. c. charge a stand-by passenger more than $500. d. charge a stand-by passenger more than $100. e. fill the seats at the last minute for any price.