Please answer the given four questions related to the market for loanable funds. What effect will an increase in interest rates have on the quantity of loanable funds supplied? There will be no change in quantity supplied. Quantity supplied will decrease. Some lenders will offer more whereas others offer less. Quantity supplied will increase. As interest rate decreases, what happens to the quantity of loanable funds demanded? Some borrowers will demand more funds whereas others will demand less. There will be no change in quantity demanded. Quantity demanded will increase. Quantity demanded will decrease. Which of the terms acts as the "price" in the market for loanable funds? demand capital supply
Please answer the given four questions related to the market for loanable funds. What effect will an increase in interest rates have on the quantity of loanable funds supplied? There will be no change in quantity supplied. Quantity supplied will decrease. Some lenders will offer more whereas others offer less. Quantity supplied will increase. As interest rate decreases, what happens to the quantity of loanable funds demanded? Some borrowers will demand more funds whereas others will demand less. There will be no change in quantity demanded. Quantity demanded will increase. Quantity demanded will decrease. Which of the terms acts as the "price" in the market for loanable funds? demand capital supply
Chapter16: Interest, Rent, And Profit
Section: Chapter Questions
Problem 3QP
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Please answer the given four questions related to the market for loanable funds.
What effect will an increase in interest rates have on the quantity of loanable funds supplied?
There will be no change in quantity supplied.
Quantity supplied will decrease.
Some lenders will offer more whereas others offer less.
Quantity supplied will increase.
As interest rate decreases, what happens to the quantity of loanable funds demanded?
Some borrowers will demand more funds whereas others will demand less.
There will be no change in quantity demanded.
Quantity demanded will increase.
Quantity demanded will decrease.
Which of the terms acts as the "price " in the market for loanable funds?
demand
capital
supply
If the projected rate of return for a project is less than the interest rate for a loan that is necessary to complete the project, how will the borrowing business act?
The business will proceed anyway, knowing that the return is only an estimate.
The business will not take out the loan.
The business will demand more funds to cover the shortfall.
The business will take out the loan.
interest rate
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