Asked by
Aqueelah Purifoye
on Nov 26, 2024Verified
The supply curve of loanable funds is upsloping because
A) businesses find more investments to be profitable at low interest rates than at high interest rates.
B) government budget deficits vary inversely with the equilibrium interest rate.
C) households are willing to save more at high interest rates than they are at low interest rates.
D) banks lend more at low interest rates than they do at high interest rates.
Loanable Funds
The market where savers and borrowers exchange funds, typically in the form of loans or bonds.
Supply Curve
A graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing to sell, holding other factors constant.
Interest Rates
The percentage charged by a lender to a borrower for the use of assets, typically expressed as an annual percentage of the principal.
- Analyze how changes in interest rates influence saving and borrowing behaviors.
Verified Answer
SD
Learning Objectives
- Analyze how changes in interest rates influence saving and borrowing behaviors.