Which Is Not a Reason the Demand Curve for Loanable

question 23

Multiple Choice

Which is not a reason the demand curve for loanable funds slopes down?

• A)The value of the MRP in terms of today's money shrinks as the interest rate rises.
• B)Future returns must be discounted more when the interest rate rises.
• C)As the interest rate rises, more and more investments become unprofitable.
• D)Production becomes more profitable in the future, reducing required inputs today.

---

Definitions:

Goodwill

The intangible asset that arises as a result of the acquisition of one company by another for a premium value, as well as a general feeling of kindness or support.

Production

The process of creating, manufacturing, or producing goods and services.

Routine Inquiry

A standard or regularly occurring request for information or clarification.

Cost Estimates

An evaluation or approximation of the likely expenses involved in the execution of a project or production of a good.