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Suppose investors believe the economy will grow in the future. Which of the following best describes the impact of this belief on demand for loanable funds and interest rates? L…

Suppose investors believe the economy will grow in the future. Which of the following best describes the impact of this belief on demand for loanable funds and interest rates? L…
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Suppose investors believe the economy will grow in the future. Which of the following best describes the impact of this belief on demand for loanable funds and interest rates?

Loanable Funds / Interest rates
A. Increase / Increase
B. Increase / Decrease
C. No change / Increase
D. Decrease / Increase
E. Decrease / Decrease

asked
User Adrian Rodriguez
by
7.7k points

2 Answers

5 votes

Answer:

Increase Increase

Step-by-step explanation:

answered
User Waterlink
by
8.2k points
7 votes

Answer:

B increase in loanable funds and decrease in interest rates

answered
User Szzaass
by
8.2k points
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