Question:As interest rate decreases, what happens to the quantity of loanable funds demanded? a. Some borrowers will demand more funds whereas others will demand less. b. There will be no change in the quantity demanded. c. Quantity demanded will increase. d. Quantity demanded will decrease. QUESTION What effect will an increase in interest rates have on the quantity of loanable funds supplied? • a. There will be no change in quantity supplied. • b. Some lenders will offer more whereas others will offer less. • c. Quantity supplied will decrease. • d. Quantity supplied will increase.
Question:As interest rate decreases, what happens to the quantity of loanable funds demanded? a. Some borrowers will demand more funds whereas others will demand less. b. There will be no change in the quantity demanded. c. Quantity demanded will increase. d. Quantity demanded will decrease. QUESTION What effect will an increase in interest rates have on the quantity of loanable funds supplied? • a. There will be no change in quantity supplied. • b. Some lenders will offer more whereas others will offer less. • c. Quantity supplied will decrease. • d. Quantity supplied will increase.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question:As interest rate decreases, what happens to the quantity of loanable funds demanded?
a. Some borrowers will demand more funds whereas others will demand less.
b. There will be no change in the quantity demanded.
c. Quantity demanded will increase.
d. Quantity demanded will decrease.
QUESTION
What effect will an increase in interest rates have on the quantity of loanable funds supplied?
• a. There will be no change in quantity supplied.
• b. Some lenders will offer more whereas others will offer less.
• c. Quantity supplied will decrease.
• d. Quantity supplied will increase.
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