In the market for loanable funds, suppose the current interest rate is 5%. At a rate of 5%, investors wish to borrow $100 million and savers wish to save $125 million. We would expect: a the interest rate to fall as there is currently a surplus of loanable funds. b the interest rate to rise as there is currently a shortage of loanable funds. c the interest rate to remain the same as the loanable funds market is in equilibrium. d the interest rate to rise as there is currently a surplus of loanable funds. e the interest rate to fall as there is currently a shortage of loanable funds.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “In the market for loanable funds, suppose the current interest rate is 5%. At a rate of 5%, investors wish to borrow $100 million and ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
If data indicate the economy is in recession and members of Congress are working to pass legislation to encourage economic growth, which of the following has almost certainly occurred?
Answers (1)
Martin wants to provide money in his will for an annual bequest to whichever of his living relatives is oldest. That bequest will provide $4000 in the first year, and will grow by 7% per year, forever.
Answers (1)
Use the following information to answer the question about BobCat Co. at the end of 2017: Accounts receivable $44,890 Accounts payable 6,405 Cash 16,070 Common stock 42,500 Long-term notes payable 20,600 Merchandise inventory 28,475 Salary Payable
Answers (1)
When you are making a list of careers that interest you, you should always: Evaluate each option right away, to keep your list manageable. Note the source of your information, in case you need to find out more.
Answers (1)
Your credit card company charges you 1.45 percent per month. what is the annual percentage rate on your account? 16.67 percent 16.79 percent 17.40 percent 18.00 percent 18.86 percent
Answers (1)
New Questions in Business
You have just deposited $11,000 into an account that promises to pay you an annual interest rate of 6.5 percent each year for the next 6 years.
Answers (1)
During May, Bergan Company accumulated 2,500 hours of direct labor costs on Job 200 and 3,000 hours on Job 305. The total direct labor was incurred at a rate of $28 per direct labor hour for Job 200 and $24 per direct labor hour for Job 305.
Answers (1)
A share of stock currently sells for $60, pays an annual dividend of $4.00, and earned a rate of return of 20% over the past year. What did this stock sell for one year ago?
Answers (1)
Rachel wants to buy a house, fix it up, and rent it out. she cannot afford to do it on her own, so she and some friends from her book club agree to pool their money for the project. their arrangement could be known as a joint venture or as a
Answers (1)
What are considered part of a country's infrastructure?
Answers (1)