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.

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Definitions:

Reduced

Reduced typically refers to a chemical reaction in which atoms gain electrons, or in a broader sense, the diminishment in size, amount, or intensity of something.

Acid

Substances that release hydrogen ions (H+) when dissolved in water, characterized by their sour taste and the ability to turn litmus paper red.

Oxidized

The state of a molecule that has lost electrons, often associated with a gain of oxygen or loss of hydrogen.

Reduced

In chemistry, it refers to the gain of electrons by a molecule, atom, or ion.