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Use the following to answer questions :
Figure: Crowding Out Use the following to answer questions : Figure: Crowding Out   -(Figure: Crowding Out)  If the supply of loanable funds curve shifts to the right, the result will be a(n)  _____ in the total amount of borrowing and a(n)  _____ in the interest rate. A) increase; increase B) decrease; decrease C) increase; decrease D) decrease; increase
-(Figure: Crowding Out) If the supply of loanable funds curve shifts to the right, the result will be a(n) _____ in the total amount of borrowing and a(n) _____ in the interest rate.


Definitions:

Share Price

The price of a single share of a number of saleable stocks of a company, derivative, or other financial asset.

Plowback Ratio

Plowback Ratio, also known as the retention ratio, is the proportion of earnings that a company retains and reinvests in its operations, rather than distributing as dividends.

Expected ROE

The anticipated return on equity, which measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Market-capitalization Rate

The discount rate derived from the market capitalization of a company, used to determine the present value of its future earnings.

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