1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Effectus [21]
3 years ago
15

An increase in the real interest rate results in which of the​ following? A. an increase in the demand for loanable funds B. a d

ecrease in the demand for loanable funds C. an increase in the quantity of loanable funds supplied D. Both B and C will occur as a result of an increase in the real interest rate.
Business
2 answers:
irakobra [83]3 years ago
6 0

Answer:

B. a decrease in the demand for loanable funds.

Explanation:

An increase in the real interest rate will result in a decrease for the loanable funds.

Loans act as a fund that is an amount of money borrowed by the companies to be utilized for the running of the business. Interest is the amount payable at a certain rate on the amount borrowed in the form of loans. Loans are generally provided by either the banks or the financial institutions to the public or even companies.

The higher the rate of interest the lesser the demand for loans is there. Interest is charged on loans because it is a facility given.

34kurt3 years ago
4 0

Answer:

<h2>An increase in the real interest rate results in a decrease in the demand for loanable funds.Hence,the answer in this case would be option B. among the answer choices or list presented in the question.</h2>

Explanation:

  • A market for loanable funds represent a monetary or financial market where the main commodity or good that is commercially exchanged or bought and sold is money.
  • The borrowers of loanable funds demand money and the suppliers of loanable funds are the ones who save money and lends them to the borrowers in the market
  • The price or the value of money in the market for loanable funds is denoted by the real market interest rate.Now,the real interest rate has a negative or inverse relationship with the demand for money or loanable funds.
  • As the real interest rate increases in the market,the financial cost of borrowing for the borrowers also increases.In other words,the borrowers of loanable funds or money would now have to pay higher periodic interest on any financial borrowing or loan to the suppliers or lender and vise versa.Therefore,as real interest rises the money or loanable funds demand decreases and vise versa.
You might be interested in
Liz meija is employed as a social worker in a host setting. she is most likely employed in a(n) ______.
olga_2 [115]
Liz Meija is emplayed as a social worker in a host setting. She is mosy likly employed in an agency.
8 0
3 years ago
"the telling style of leadership has a ________ feature."
Shkiper50 [21]
Hi Laight6069, 

The telling style of leadership has a <span>high-task, low-relationship feature.</span>
5 0
3 years ago
The economic principle of ______ says that when there are two houses in the same neighborhood with the same size, appeal, and ut
Rina8888 [55]

The economic principle of substitution says that when there are two houses in the same neighborhood with the same size, appeal, and utility, the lower-priced one will tend to sell first.

<h3>The economic principle of substitution</h3>
  • According to the principle of substitution, the cost of purchasing a substitute that is just as desired tends to establish the upper limit of value, assuming no inopportune delays.
  • A shrewd investor would not spend more on an asset that generates income than it would cost to construct or buy an asset of a similar nature.
  • According to this theory, the cost of acquiring a comparable substitute property with the same use, design, and revenue determine the maximum value of a property in most cases.
  • For instance, why would somebody pay $1,000,000 for a home when they could pay $750,000 for a different but as appealing home in the same neighborhood?

To learn more about the economic principle of substitution refer to:

brainly.com/question/9659517

#SPJ4

4 0
2 years ago
Which of the following is an advantage of newspaper advertising?
Furkat [3]

Answer: Option A  

                             

Explanation: One of the major advantage of using newspaper is that an individual can reach to the prospects on such demo-graphical areas where other mediums might not work effectively and efficiently.

If an entity wants to advertise its product to smaller audiences at living in difficult places then it should go for newspaper. Also newspaper is the most common medium as one might not watch tv or listen radio daily but most of the individuals read newspaper everyday at morning.

Hence the correct option is A .

4 0
3 years ago
Assume that locating a cement factory in the middle of Boston would save the producer $5 million at a public expense, in polluti
never [62]

Answer:

$5 million

Explanation:

If we follow the Coase Theorem, the appropriate solution to this case should be obtained regardless of initial rights. In this case, the factory saves $5 million to the producer, but it costs $10 million to Boston residents. if Boston residents pay $5 million or more to the factory owner, then both would benefit. Boston residents will gain $10 - $5 = $5 million, as well as the factory owner.

7 0
3 years ago
Other questions:
  • Discuss the advantages of understanding accounting as it relates to your current or future position. (consider careers in manage
    6·1 answer
  • The above plot shows three fits to data a student collected in a load deflection test: linear, power function, and log-linear. t
    15·1 answer
  • Aaron is an administrative manager at EMC Insurance. His job includes updating the company website every morning to include the
    13·2 answers
  • On August 15, you purchased 110 shares of stock in the Cara Cotton Company at $26 a share and a year later you sold it for $22 a
    7·1 answer
  • A company budgets the following merchandising purchases: April: $70,000; May $90,000; June: $60,000. All purchases are on accoun
    8·1 answer
  • Contribution Margin Molly Company sells 37,000 units at $19 per unit. Variable costs are $11.59 per unit, and fixed costs are $1
    7·1 answer
  • A restaurant chain hires two new restaurant managers. One manager is a woman, and one is a man. Both candidates are equally qual
    8·1 answer
  • Marston Manufacturing Company is considering a project that requires an investment in new equipment of $3,400,000, with an addit
    15·1 answer
  • Jonah earns a commission of 9% of his sales.
    10·1 answer
  • Which phrase best completes the diagram? Macroeconomic Goals for a Society ? Stable prices Economic growth
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!