In the Loanable Funds Market

Multiple Choice

In the loanable funds market,

A) when interest rates are higher, businesses borrow more money for investment.
B) when interest rates are higher, consumers borrow more money for mortgages.
C) an increase in consumer savings causes the interest rate to rise.
D) savers are the demanders, and borrowers are the suppliers.
E) businesses do most of the borrowing to finance investment spending on new factories.