Suppose Households Decide to Reduce Savings Because They Want to Enjoy

question 75

Multiple Choice

Suppose households decide to reduce savings because they want to enjoy more present time than future time.In this case,the loanable funds model predicts that

• A) interest rate goes down, and quantity of borrowed funds increases.
• B) interest rate goes down, and quantity of borrowed funds decreases.
• C) interest rate goes up, and quantity of borrowed funds decreases.
• D) interest rate goes up, and quantity of borrowed funds increases.

---

Definitions:

Repeat a Comment

Refers to the action of saying or writing something again that has already been said or written.

Common Phrases

Frequently used expressions or sets of words in a particular language or within a specific context.

Competitive Job Candidate

A person who possesses the skills, experience, and qualifications that make them stand out in the job market.

Mobile Devices

Portable electronic devices with computing capabilities, such as smartphones and tablets, allowing for communication and access to information on the go.