What Happens to Each of the Following If the Supply

question 86

Short Answer

What happens to each of the following if the supply of loanable funds shifts left?
A. the interest rate
B. net capital outflow
C. the exchange rate

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Definitions:

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount to secure immediate capital.

Assignment

Assignment refers to the transfer of rights or property from one party to another, commonly seen in contracts and legal agreements.

Novation

The act of replacing one obligation with another by mutual agreement, effectively creating a new contract.