Asked by
Nereida Arteaga
on Nov 26, 2024
Verified
A decrease in saving that leads to an increase in the interest rate will
A) decrease the amount of investment spending.
B) only result in a surplus of loanable funds.
C) shift the demand for loanable funds to the right, increasing net investment.
D) shift the demand for loanable funds to the left, causing a decrease in investment.
Investment Spending
Expenditures made by businesses or individuals on capital goods, which are intended to create future benefits such as increased production or revenue.
Interest Rate
The segment of a loan accruing interest costs to the borrower, commonly presented as a yearly percentage of the ongoing loan total.
- Assess the effects of state regulations and economic variables on the market for borrowable funds.
- Comprehend the connection between choices in investments and the fluctuations in interest rates.
Verified Answer
ES
Learning Objectives
- Assess the effects of state regulations and economic variables on the market for borrowable funds.
- Comprehend the connection between choices in investments and the fluctuations in interest rates.