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An increase in the supply of loanable funds will decrease the rate of interest

  An increase in the supply of loanable funds will decrease the rate of interest.

 

32.              Interest rates and the present value of a physical or financial asset are inversely related,
                            that is, when one increases, the other decreases.

33.              Market interest rates are determined solely by people’s willingness to loan funds, that is,
                            their rate of time preference.

34.              Market equilibrium rates of interest are rarely expected to approximate efficient interest
                            rates between willing transactors of exchange.

35.              The returns from productive capital investment are determined by interest rates.

 

36.              Discounting is a process of turning a stream of future returns into a present dollar
                            equivalent.

Dec 11 2019 View more View Less

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