Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help please QUESTION 15 The reason why there is a direct relationship between the market interest rate and quantity of loanable funds supplied is because,_

help please

image text in transcribed
QUESTION 15 The reason why there is a direct relationship between the market interest rate and quantity of loanable funds supplied is because,_ Oa. as the market interest rates rise opportunity cost of spending one's income decreases. O b. as the market interest rates rise opportunity cost of saving one's income decreases. O c. as the market interest rates rise opportunity cost of spending one's income also rises, O d. as the market interest rates fall opportunity cost of spending one's income rises. QUESTION 16 Which of the following factors will increase demand (shift demand curve to the right and up) for loanable funds in the loanable funds market? O a. Future optimism or pessimism about investment opportunities. O b. Government borrowing O c. change in interest rates. O d. both a and b

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics The Basics

Authors: Michael Mandel

2nd Edition

0073523186, 9780073523187

More Books

Students also viewed these Economics questions

Question

1. Empirical or factual information,

Answered: 1 week ago

Question

1. To take in the necessary information,

Answered: 1 week ago