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37.The demand curve for loan-able funds slopes downward to the right because: mey -----------------

37.The demand curve for loan-able funds slopes downward to the right because: mey -----------------

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter21: Financial Markets, Saving, And Investment
Section: Chapter Questions
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Question 37 37.The demand curve for loan-able funds slopes downward to the right because: a. Firms borrow money only when interest rates are low. b. An increase in the supply of loanable funds generally raises interest rates. c. There are more projects that are profitable at low than at high rates of interest. d. The lower the asset's rate of return, the higher the interest rate. e. Money is not as profitable when it price is high.
Transcribed Image Text:Question 37 37.The demand curve for loan-able funds slopes downward to the right because: a. Firms borrow money only when interest rates are low. b. An increase in the supply of loanable funds generally raises interest rates. c. There are more projects that are profitable at low than at high rates of interest. d. The lower the asset's rate of return, the higher the interest rate. e. Money is not as profitable when it price is high.
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