Solved

Suppose Many Businesses Want to Increase Their Stock of Capital

Question 64

Multiple Choice

Suppose many businesses want to increase their stock of capital goods and decide to borrow funds to do it. Which would be the likely result of this event?


A) Interest rates would increase.
B) Interest rates would decrease.
C) The equilibrium quantity of loanable funds would decrease.
D) The equilibrium quantity of loanable funds would remain unchanged.

Correct Answer:

verifed

Verified

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

Related Questions

Q59: Effective usury laws<br>A)subsidize lenders.<br>B)penalize those who borrow

Q60: What is the difference between insurable and

Q61: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8602/.jpg" alt=" Refer to the

Q62: In general, if we compare two loans

Q63: Interest rates of various loans vary over

Q65: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8602/.jpg" alt=" Refer to the

Q66: A bank charges one borrower (A)8 percent

Q67: The payment earned for taking uninsurable risks

Q68: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8602/.jpg" alt=" The table gives

Q69: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8602/.jpg" alt=" Refer to the