Asked by
Alyson Muehlman
on Oct 13, 2024
Verified
Interest rates would __________ if the supply of loanable funds decreased.
A) stay the same
B) decline
C) rise
Interest Rates
The cost of borrowing money or the rate of return on investments, typically expressed as a percentage of the principal.
Loanable Funds
The money available for lending and borrowing in the financial markets.
- Understand the role of interest rates and how they are affected by changes in the supply of loanable funds.
Verified Answer
KR
Learning Objectives
- Understand the role of interest rates and how they are affected by changes in the supply of loanable funds.
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