Other Things the Same,an Increase in the Interest Rate

question 37

Multiple Choice

Other things the same,an increase in the interest rate

• A)would shift the demand for loanable funds to the right.
• B)would shift the demand for loanable funds to the left.
• C)would increase the quantity of loanable funds demanded.
• D)would decrease the quantity of loanable funds demanded.

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Definitions:

Marginal Tax Bracket

The tax rate that applies to the last unit of income earned by an individual or business.

Municipal Bond

A municipal bond is a debt security issued by a city, municipality, or county to finance its capital expenditures.

Corporate Bond

A debt security issued by a corporation to raise capital, promising to pay back the borrowed money plus interest at specified future dates.

Ask Price

The lowest price a seller is willing to accept for an asset in a financial market.