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:

Accounts Payable

the amount a company owes to suppliers or creditors for goods and services bought on credit.

Inventory Decrease

A reduction in the quantity or value of inventory held by a business over a specific period.

Cash Payments

Transactions involving the transfer of cash from one entity to another, usually as exchanges for goods, services, or to settle debts.

Purchases

Transactions involving the buying of goods or services for the purpose of resale or direct use in production or operations.