Multiple Choice
Noel is considering expanding his bike shop. What will happen if interest rates fall?
A) He is less likely to expand. This illustrates why the supply of loanable funds slopes downward.
B) He is more likely to expand. This illustrates why the supply of loanable funds slopes upward.
C) He is less likely to expand. This illustrates why the demand for loanable funds slopes downward.
D) He is more likely to expand. This illustrates why the demand for loanable funds slopes upward.
Correct Answer:
Verified
Correct Answer:
Verified
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