Multiple Choice
When the demand for loanable funds exceeds the supply of loanable funds, households want to save ______ than firms want to invest and the interest rate ______.
A) more; rises
B) more; falls
C) less; rises
D) less; falls
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q161: In the long run, what determines the
Q162: The government raises lump-sum taxes on income
Q163: The government raises lump-sum taxes on income
Q164: The reduction in investment brought about by
Q165: The government spending component of GDP includes
Q166: According to Goldin and Katz, the increasing
Q167: Assume that GDP (Y) is 6,000.
Q168: Private saving is:<br>A) income minus consumption minus
Q169: According to the neoclassical theory of distribution,
Q171: In a closed economy with fixed output,