Interest rate (percent) E Supply of loanable funds Demand for loanable funds Quantity of loanable funds per period (trillions of dollars) in this market for loanable funds, what would happen if the interest rate suddenly fell below re? O a. The number of people looking for loans that cannot get a loan would increase. Ob. The number of people looking for loans that cannot get a loan would decrease Oc. Loans would be cheaper, and everyone who needs a loan would get one. Od. Loans would be more expensive, and many people who need a loan would not be able to get one
Interest rate (percent) E Supply of loanable funds Demand for loanable funds Quantity of loanable funds per period (trillions of dollars) in this market for loanable funds, what would happen if the interest rate suddenly fell below re? O a. The number of people looking for loans that cannot get a loan would increase. Ob. The number of people looking for loans that cannot get a loan would decrease Oc. Loans would be cheaper, and everyone who needs a loan would get one. Od. Loans would be more expensive, and many people who need a loan would not be able to get one
Chapter21: Financial Markets, Saving, And Investment
Section: Chapter Questions
Problem 6P
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