5. The supply curve of loanable funds a. is downward sloping, reflecting how the law of diminishing...
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5. The supply curve of loanable funds
a. is downward sloping, reflecting how the law of diminishing returns is applied to the loanable funds market.
b. is downward sloping, relating the quantity of saving supplied on the loanable funds market to the interest rate.
c. is upward sloping, relating the quantity of saving supplied on the loanable funds market to the interest rate.
d. is horizontal, relating the quantity of saving supplied on the loanable funds market to the interest rate.
e. is horizontal, relating the firm’s willingness to use loanable funds at different interest rates.
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