Examlex

Solved

If There Is a Shortage in the Market for Loanable

question 23

Multiple Choice

If there is a shortage in the market for loanable funds,what happens to desired saving and desired investment as the interest rate moves to its equilibrium value?


Definitions:

Book Value

The net value of a company's assets minus its liabilities and intangible assets, as recorded on the balance sheet.

Stock Split

A stock split is a corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, while the market capitalization remains unchanged.

Retained Earnings

The portion of net income not distributed to shareholders as dividends and instead reinvested in the business.

Stable Dividend Policy

A strategy where a company aims to distribute a consistently fixed dividend to shareholders, regardless of the year-to-year fluctuations in earnings.

Related Questions