Multiple Choice
Assume that foreign investors who have invested in U.S. securities decide to increase their holdings of U.S. securities. This should cause the supply of loanable funds in the United States to ____ and should place ____ pressure on U.S. interest rates.
A) decrease; upward
B) decrease; downward
C) increase; downward
D) increase; upward
Correct Answer:

Verified
Correct Answer:
Verified
Q34: The crowding-out effect occurs when<br>A)foreign investors crowd
Q35: According to the Fisher effect, when the
Q36: The quantity of loanable funds supplied is
Q37: If the real interest rate was negative
Q38: Canada and the United States are major
Q40: The _ suggests that the market interest
Q41: When there are expectations of higher inflation
Q42: As a result of more favorable economic
Q43: The relationship between interest rates and expected
Q44: The federal government's demand for loanable funds