Ask Question
BusinessBusiness
13 August, 23:26

Other things the same, an increase in the interest rate ...

a. would shift the demand for loanable funds to the right.

b. would increase the quantity of loanable funds demanded.

c. would decrease the quantity of loanable funds demanded.

d. would shift the demand for loanable funds to the left.

+4
Answers (1)
  1. 13 August, 23:44
    0
    Answer: Option (d) is correct.

    Explanation:

    Other things remains constant, an increase in the interest rate will generally reduces the demand for loanable funds because loanable funds become more expensive for the borrowers. This increase in interest rate also shift the demand curve towards left for the loanable funds.

    With increased interest rate, borrowers have to pay more for the loans. Conversely, if there is a fall in an interest rate then as a result demand for the loanable funds increases, as it will become cheaper for the borrowers.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Other things the same, an increase in the interest rate ... a. would shift the demand for loanable funds to the right. b. would increase ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Carlos owns a chain of retail electronic stores. He is evaluating how he allocates his firm's IMC budget.
Answers (1)
If parents say, "Never take candy from strangers" then why do we celebrate Halloween?
Answers (1)
Select the correct answer. Ashley is a finance executive. She has gathered all the data from different departments regarding the finances expended as well as earned in the process of selling a product. She needs to prepare an income statement.
Answers (1)
Which of porter's competitive strategies concentrates on a particular buyer group, product line segment, or geographic market so that a company can serve its market more effectively?
Answers (1)
Graber Company had $130,000 in sales on account last year. The beginning accounts receivable balance was $18,000 and the ending accounts receivable balance was $12,000. The company's average collection period was closest to: Select one: a. 33.
Answers (1)
New Questions in Business
What term refers to a set amount of money kept in the cash register to make change with? A. Excess cash B. Standard cash stock C. Cash drop D. Cash float
Answers (1)
Torres travel's stockholders' equity at the beginning of march 2014 was $200,000. during the month, the company earned net income of $50,000 and paid dividends of $10,000. at the end of march 2014, what is the amount of stockholders' equity?
Answers (1)
In the Keynesian model, it is assumed that, when demand for a firm's product changes, the firm: A. changes prices to meet the demand. B. changes production levels to meet the demand. C. changes prices and production levels to meet demand. D.
Answers (1)
If you purchased a camera in Britain for 100 pounds what would be the price in U. S. dollars if one pound is worth 1.40? A:71 B:100 C:140 D:1400
Answers (1)
Gontier corporation stock currently sells for $64.18 per share. the market requires a return of 12 percent on the firm's stock. required: if the company maintains a constant 5.
Answers (1)
Home » Business » Other things the same, an increase in the interest rate ... a. would shift the demand for loanable funds to the right. b. would increase the quantity of loanable funds demanded. c. would decrease the quantity of loanable funds demanded. d.
Sign Up Forgot Password?