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题目
BFF3121 - S2 2025 Chapter 5 Review Quiz
单项选择题
Ceteris paribus, a decrease in the demand for loanable funds
选项
A.drives the interest rate down
B.drives the interest rate up
C.might not have any effect on interest rates
D.results from an increase in business prospects
E.results from a decrease in the level of savings
查看解析
标准答案
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思路分析
To understand the effect of a decrease in the demand for loanable funds, think about the loanable funds market where the demand curve for loans represents borrowers' desired borrowing at each real interest rate, and the supply curve represents savers' desired lending.
Option 1: 'drives the interest rate down' — When demand for loanable funds falls, the demand curve shifts left. With the same supply of savings, a lower demand f......Login to view full explanation登录即可查看完整答案
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