Suppose That a Business Discovers an Opportunity That Requires Funds

question 49

Multiple Choice

Suppose that a business discovers an opportunity that requires funds to exploit. What effect would this have in the market for loanable funds?

• A)It will increase interest rates and the quantity of funds lent will rise.
• B)It will decrease interest rates and the quantity of funds lent will rise.
• C)It will increase interest rates and the quantity of funds lent will fall.
• D)It will decrease interest rates and the quantity of funds lent will fall.

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Definitions:

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