Asked by
Melissa Hernandez
on Oct 13, 2024Verified
When the demand for loanable funds rises,the amount of money borrowed will ___________.
A) rise
B) decline
C) be unchanged
Loanable Funds
The total funds available in the financial markets for borrowing, which come from savings and are used for investment.
Borrowed
Refers to funds or resources obtained temporarily from another party, typically with the obligation of returning or repaying the amount with interest.
Demand
The quantity of goods or services that consumers are willing and able to purchase at various prices during a given time period.
- Understand the impact of variations in the availability of loanable funds on interest rates.
- Assess the impact of supply and demand variations on market equilibrium, encompassing movements in both demand and supply curves.
Verified Answer
SU
Learning Objectives
- Understand the impact of variations in the availability of loanable funds on interest rates.
- Assess the impact of supply and demand variations on market equilibrium, encompassing movements in both demand and supply curves.