In the Loanable Funds Market

question 48

Multiple Choice

In the loanable funds market,

• A) when interest rates are higher, businesses borrow more money for investment.
• B) when interest rates are higher, consumers borrow more money for mortgages.
• C) an increase in consumer savings causes the interest rate to rise.
• D) savers are the demanders, and borrowers are the suppliers.
• E) none of the above are true.

---

Definitions:

Bipolar Disorder

A mental condition marked by alternating periods of elation and depression, previously called manic depression.

Intense Sadness

A profound state of sorrow or despair, often associated with major depressive episodes or significant loss.

Stage Fright

Anxiety, fear, or persistent phobia which may be aroused in an individual by the requirement to perform in front of an audience.

Specific Phobia

An intense, irrational fear of or anxiety towards an object or situation, leading to avoidance behavior.