A Decrease in the Demand for Loanable Funds Occurs When

question 57

Multiple Choice

A decrease in the demand for loanable funds occurs when

• A)the real interest rate rises.
• B)government expenditure increases.
• C)the government cuts taxes.
• D)expected profit decreases.
• E)expected profit increases.

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Definitions:

Comprehensive Image

An extensive or complete representation or perception of an object, person, or concept, capturing all its aspects and attributes.

Profitability

A measure of how much profit a company generates compared to its revenues.

Financial Plan

A comprehensive evaluation of an individual's or organization's current and future financial state by using known variables to predict future cash flows, asset values, and withdrawal plans.

Time Horizon

The length of time over which an investment or a project is expected to unfold or achieve certain goals.