If the Interest Rate Rises,the

question 1

Multiple Choice

If the interest rate rises,the

• A) quantity of loanable funds demanded by firms decreases
• B) quantity of loanable funds demanded by government decreases
• C) quantity of loanable funds demanded by firms increases
• D) quantity of loanable funds demanded by government increases
• E) demand for loanable funds curve shifts to the right

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Definitions:

Utility Function

A mathematical representation in economics that reflects the satisfaction or utility a consumer derives from consuming a certain quantity of goods and services.

Income

Income earned, particularly in a consistent manner, from employment or investment returns.

Price

The amount of money expected, required, or given in payment for something.

Commodity X

A placeholder name for a generic commodity or product in economic models or discussions.