Which of the Following Is Least Likely to Affect Household

question 48

Multiple Choice

Which of the following is least likely to affect household demand for loanable funds?

• A) a decrease in tax rates
• B) an increase in interest rates
• C) a reduction in positive net present value (NPV) projects available
• D) All of the above are equally likely to affect household demand for loanable funds.

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Definitions:

Signature

A handwritten or digitally produced mark made by an individual to signify agreement, approval, or identity.

Bank Draft

A check drawn by one bank on another bank in which it has funds on deposit in favor of a third person, the payee. Also called teller’s check.

Assigned

The act of transferring rights or duties under a contract or agreement from one party to another.

Rights

Entitlements or freedoms that are guaranteed by law or social norms.