If the Price for Loanable Funds Is Less Than the Return

question 79

Multiple Choice

If the price for loanable funds is less than the return on capital, then firms will

• A)borrow in the loanable funds market and invest in capital goods, and as this happens, the quantity of capital decreases and its return rises.
• B)borrow in the loanable funds market and invest in capital goods, and as this happens, the quantity of capital increases and its return falls.
• C)not borrow in the loanable funds market, and over time the capital stock will decrease and the return on capital will fall.
• D)not borrow in the loanable funds market, and over time the capital stock will decrease and the return on capital will rise.

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Definitions:

Incidence Rate

The frequency at which a new event, such as an illness or accident, occurs within a specific population during a given time period.

Work-related Injuries

Injuries that occur in the course of employment, often covered by workers' compensation insurance.

Physical Environment

The tangible, physical surroundings in which an organism or community lives, works, or spends time.

Respiratory Problems

Health conditions related to the lungs and breathing, including diseases such as asthma and COPD (chronic obstructive pulmonary disease).