Suppose a Foreign Real Estate Company Wants to Build a Number

question 177

Multiple Choice

Suppose a foreign real estate company wants to build a number of new houses in Canada.How does this affect the Canadian market for loanable funds?

• A)The supply of loanable funds increases.
• B)The demand for loanable funds increases.
• C)The supply of loanable funds decreases.
• D)The demand for loanable funds decreases.

---

Definitions:

Farm Mechanization

The process of using agricultural machinery and equipment to increase the efficiency of farming operations and productivity.

Disk Plow

An agricultural tool featuring a disk-shaped blade used for plowing to turn over the soil, particularly useful in tough or sticky soil conditions unlike traditional plows.

Fordlandia

A failed industrial town established by American industrialist Henry Ford in the Brazilian Amazon in the 1920s, intended to secure a source of cultivated rubber for his automobile manufacturing.

Rubber Supply

The availability or provision of rubber, a significant material used in various industries, which can be natural or synthetic and is vital for manufacturing numerous products.