Ask Question
BusinessBusiness
19 November, 21:20

The slope of the demand for loanable funds curve represents the ...

a. positive relation between the real interest rate and saving.

b. negative relation between the real interest rate and investment.

c. negative relation between the real interest rate and saving.

d. positive relation between the real interest rate and investment.

+3
Answers (1)
  1. 19 November, 21:33
    0
    Answer: c. negative relation between the real interest rate and saving.

    Explanation: Savings belong to what an economy saves from its income, which in turn represents national savings. We also have the investment and the net capital flow. The balance is reached when the amount of savings equals investment and net capital flows or demand for loanable flows.

    Therefore, we can say that the demand is negative when interest rates rise, since this retracts the economy and decreases the savings and thus the money available to lend.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The slope of the demand for loanable funds curve represents the ... a. positive relation between the real interest rate and saving. b. ...” 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
Imagine that you are a pecan farmer in Georgia. If the same trends hold true for nut production as maple syrup production, where should you be looking to relocate your business?
Answers (1)
What do you believe are the best solutions for tackling restaurant reservation?
Answers (1)
Jole Co. lent $10,000 to a major supplier in exchange for a noninterest-bearing note due in three years and a contract to purchase a fixed amount of merchandise from the supplier at a 10% discount from prevailing market prices over the next 3 years.
Answers (1)
Lea Company produces hand tools. Budgeted sales for March are 10,900 units. Beginning finished goods inventory in March is budgeted to be 1,400 units, and ending finished goods inventory is budgeted to be 1,600 units.
Answers (1)
Kevin wants to lose 5 pounds of fat. he finds it hard to cut back on his eating, so he decides that he will walk an hour each day to burn more calories. how many extra calories must he expend to lose one pound of fat?
Answers (2)
New Questions in Business
Interest rates generally reflect the potential elects of initation the level of risk in an investment the real value of the investment the amount of money invested
Answers (1)
What is a variable expense? A. An expense that is the same during some months, and different during other months. B. An expense that is the same from month to month. C. An expense that is different from month to month. D. None of the above.
Answers (2)
Calculator Santorino Company produces two models of a component, Model K-3 and Model P-4. The unit contribution margin for Model K-3 is $6; the unit contribution margin for Model P-4 is $14. Each model must spend time on a special machine.
Answers (1)
If US workers can produce everything in less time than Mexican workers, it is not possible for the US to gain from trade with Mexico. True/False
Answers (1)
A variable cost remains constant per unit at various levels of activity. a. True b. False
Answers (1)
Home » Business » The slope of the demand for loanable funds curve represents the ... a. positive relation between the real interest rate and saving. b. negative relation between the real interest rate and investment. c.
Sign Up Forgot Password?