Other Things the Same,if the Interest Rate Falls,then

question 48

Multiple Choice

Other things the same,if the interest rate falls,then

• A)firms will want to borrow more,which increases the quantity of loanable funds demanded.
• B)firms will want to borrow less,which decreases the quantity of loanable funds demanded.
• C)firms will want to borrow more,which increase the quantity of loanable funds supplied.
• D)firms will want to borrow less,which decreases the quantity of loanable funds supplied.

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Definitions:

Sales Price

The amount of money a buyer pays to a seller for the purchase of a good or service.

Accounts Receivable

Money owed to a company by its customers from the sale of products or services on credit.

Sales Discounts

From the seller’s perspective, discounts that a seller may offer the buyer for early payment.

Normal Debit Balance

The typical balance that an account should have, where asset and expense accounts usually have debit balances.