An Increase in the Interest Rate,other Things Constant,will

question 42

Multiple Choice

An increase in the interest rate,other things constant,will:

• A)shift the demand for loanable funds curve to the right.
• B)shift the demand for loanable funds curve to the left.
• C)decrease the quantity of loanable funds supplied.
• D)decrease the quantity of loanable funds demanded.
• E)shift the supply of loanable funds curve to the right.

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Definitions:

Investing Activity

Transactions involving the purchase or sale of long-term assets and other investments, part of a company's cash flow statement.

Statement Of Cash Flows

A financial statement that shows the cash inflows and outflows for a company over a period of time.

Noncurrent Assets

Long-term assets that are not expected to be converted into cash within one year, such as property, plant, and equipment.

Treasury Stock

Represents shares that were once part of the outstanding shares but were bought back by the company. These shares don't have voting rights or dividend rights.