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lilavasa [31]
3 years ago
10

If the interest rate rises, the A. quantity of loanable funds demanded by firms decreases B. quantity of loanable funds demanded

by government decreases C. quantity of loanable funds demanded by firms increases D. quantity of loanable funds demanded by government increases E. demand for loanable funds curve shifts to the right
Business
1 answer:
torisob [31]3 years ago
8 0

Answer:

A. quantity of loanable funds demanded by firms decreases

Explanation:

Market for loanable funds represents a place of interaction between borrowers and lenders.

Quantity of loanable funds demanded represents need for the borrowers to avail funds.

Supply of loanable funds depends upon savings represented by the money banked by individuals. If consumption would be more, savings would be less and thus, supply of loananble funds will be less. This would raise the interest rate on loanable funds which would lead to a decrease in the quantity demanded of loanable funds by the firms.

Similarly, when the supply of loanable funds increases, this reduces the interest rate ,loans get cheaper and it becomes more convenient to avail loans and thus, quantity demanded of loanable funds by firms increase.

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Answer:

It implies there are diseconomies of scale.

Explanation:

It implies there are diseconomies of scale in the industry

Because as the quantity of units output increase, the cost also increase. While in economies of scale, the slope for the LRAC will be negative, as each increase in output lowers the cost.

When this occurs, there is a lower change of monopoly in the industry, as the larger firm also faces the larger cost, so the supply tend to be more diverse.

While a, indifined negative slope will generate monopolies as their cost become lower at gerater the output.

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She is an example of an <u>"interactive" </u>leader.


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2 years ago
Sally, Greg, Juan, and Amar are working on a project for a customer that is aimed at cutting the client's electrical costs. The
creativ13 [48]

Answer: Option A

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3 years ago
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jeyben [28]

Answer:

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solmaris [256]
The answer to this is D. Hope this helped :)
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