Solved

If the Real Interest Rate in the Domestic Loanable Funds

Question 206

Multiple Choice

If the real interest rate in the domestic loanable funds market increases,


A) firms will have an added incentive to undertake investment projects.
B) households will save less.
C) the net inflow of foreign capital will tend to increase.
D) it will be cheaper to purchase goods and services now rather than in the future.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions