Ask Question
BusinessBusiness
1 March, 09:04

Which of the following could explain a decrease in the interest rate and an increase in the equilibrium quantity of investment?

a. the supply of loanable funds shifted right.

b. the supply of loanable funds shifted left.

c. the demand for loanable funds shifted right.

d. the demand for loanable funds shifted left.

+2
Answers (1)
  1. 1 March, 12:39
    0
    Option (A) is correct.

    Explanation:

    When the supply of loanable funds increases then as a result there is a shift in the supply curve of loanable funds and therefore, this shift would cause the interest rate to fall and equilibrium quantity to increase.

    At a lower interest rate,

    The people take loans from the financial institutions because it will become affordable for them and hence, there is an increase in the level of investment.

    Whenever the supply of loanable funds exceeds the demand for loanable funds, the interest rate must fall.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Which of the following could explain a decrease in the interest rate and an increase in the equilibrium quantity of investment? a. the ...” 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
Why do you think identity theft is so common and so profitable for thieves?
Answers (1)
which one of the following is an example of systematic risk? A. the price of lumber declines sharply B. AA pilots go on strike C. the Federal Reserve increases interest rates D. a hurricane hits a tourist destination in Tampa E.
Answers (2)
Headquartered in San Francisco, California, Fruit Guys delivers fresh, organic fruits and other specialty food items to businesses, schools, and homes.
Answers (1)
What is standard deduction
Answers (1)
At the lowest price for jeans consumers will demand the ___ jeans and Producers Supply the ___ jeans A. Least, most B. Most, least C. Least, least
Answers (2)
New Questions in Business
Zane's leadership style includes delegating tasks to his employees and giving them the freedom to perform the tasks using any strategy they see fit. this demonstrates which of the critical management skills suggested by katz
Answers (1)
Coca-Cola spent $102 million through The Coca-Cola Campaign focusing on water stewardship, healthy and active lifestyles, community recycling, and education. This initiative is an illustration of a CSR program. True or False?
No Answers
Suppose the Board of Directors of The Staten Island Suppliers Co. announces on October 4th that the regular quarterly dividend of 50 cents per share will be payable to the holders of record at the close of business on November 15th 2019.
Answers (1)
Many government? programs, such as unemployment? compensation, operate on a deficit during recessions and a surplus during periods of economic expansion. the programs are referred to as
Answers (1)
Forlornistan is a country in the midst of a serious economic downturn. Forlornistan's GDP has declined steadily for over three years and is now at its lowest level in over sixty years.
Answers (1)
Home » Business » Which of the following could explain a decrease in the interest rate and an increase in the equilibrium quantity of investment? a. the supply of loanable funds shifted right. b. the supply of loanable funds shifted left. c.
Sign Up Forgot Password?