Multiple Choice
If the return on capital is 12 percent and the price for loanable funds is 14 percent, then
A) currently businesses will not borrow loanable funds to invest in capital goods.
B) eventually the return on capital will decrease to the point where businesses will find it profitable to borrow loanable funds.
C) the return on capital will fall as the supply of capital decreases over time, and simultaneously, the price for loanable funds will increase as savers make even more savings available.
D) a and b
Correct Answer:
Verified
Correct Answer:
Verified
Q13: Which of the following statements is true?<br>A)The
Q14: Which of the following statements is true?<br>A)As
Q15: A person with a high positive rate
Q16: Loanable funds are<br>A)another term for capital.<br>B)a particular
Q17: A firm knows that it can borrow
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Q22: Exhibit 29-4<br><br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6992/.jpg" alt="Exhibit 29-4
Q23: The demand for loanable funds curve is<br>A)upward