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If the Supply of and Demand for Loanable Funds Both

question 423

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If the supply of and demand for loanable funds both shift right,which of the following necessarily happens?


Definitions:

Double

An increase by 100% or a factor of two in a particular measure or quantity.

Discount Rate

The interest rate used to discount future cash flows of a financial instrument to present value.

Redeemed

Redeemed refers to the action of exchanging a financial instrument, such as a bond or preferred stock, for cash or another form of value, often at its maturity or a predetermined price.

Bond

A promissory note issued by a business or a governmental unit.

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