Asked by
Lindsey MacDonald
on Nov 26, 2024
Verified
The supply of loanable funds is an upward-sloping curve because the
A) higher the interest rate, the more households consume and the more households save.
B) higher the interest rate, the less households consume and the more households save.
C) lower the interest rate, the more households consume and the more households save.
D) lower the interest rate, the less households consume and the more households save.
Loanable Funds Curve
A graphical representation that shows the relationship between the interest rate and the quantity of loanable funds supplied and demanded.
Interest Rate
The cost incurred by a borrower, calculated as a percentage of the principal, for borrowing assets from a lender.
- Determine the origins of borrowing capital and their influence on market dynamics.
Verified Answer
NS
Learning Objectives
- Determine the origins of borrowing capital and their influence on market dynamics.