Asked by
jessica donnelly
on Nov 26, 2024Verified
Which of the following would cause an increase in interest rates in credit markets?
A) a decrease in business demand for credit
B) an increase in the supply of consumer saving
C) an increase in the supply of business saving
D) an increase in consumer demand for credit
Interest Rates
The cost of borrowing money or the reward for saving, often expressed as a percentage of the principal amount.
Credit Markets
Financial markets where borrowers can obtain funds from lenders, often facilitated by financial intermediaries, allowing for the purchase of goods, services, or investment in enterprises.
- Discover what factors influence shifts in the supply and demand for loanable funds.
- Become familiar with the interplay between investment options and interest rate movements.
Verified Answer
CR
Learning Objectives
- Discover what factors influence shifts in the supply and demand for loanable funds.
- Become familiar with the interplay between investment options and interest rate movements.