Asked by
Rodney Hobbs
on Oct 25, 2024
Verified
If the U.S. government retires the national debt, then
A) a shift in the demand of loanable funds will cause interest rates to rise.
B) a shift in the demand of loanable funds will cause interest rates to fall.
C) a shift in the supply for loanable funds will cause interest rates to rise.
D) a shift in the supply for loanable funds will cause interest rates to fall.
E) there will be an excess supply for loanable funds.
National Debt
The total amount of money that a country's government has borrowed, by various means.
Loanable Funds
The total amount of capital available for borrowing, often used in the context of the market for loans.
Interest Rates
Interest rates are the percentages charged or paid for the use of money on loans or deposits, influencing economic activities like borrowing and investing.
- Understand the elements that lead to changes in the supply and demand for borrowable resources, and how these changes affect interest rates.
Verified Answer
CJ
Learning Objectives
- Understand the elements that lead to changes in the supply and demand for borrowable resources, and how these changes affect interest rates.