Asked by Ogheneruno Siakpebru on May 28, 2024
Verified
Unlike most demand curves, the demand curve for loanable funds is upsloping.
Demand Curve
A graph showing the relationship between the price of a product and the quantity of the product that consumers are willing to purchase.
Loanable Funds
The total resources or funds available for borrowing in the financial markets, encompassing both savings and any additional credit provided by banks.
- Recognize the functions and effects of economic policies on the supply of loanable funds and investment rates.
Verified Answer
WA
Waseem AhmadMay 30, 2024
Final Answer :
False
Explanation :
The demand curve for loanable funds is typically downsloping, indicating that at lower interest rates, the quantity of loanable funds demanded increases, and at higher interest rates, it decreases.
Learning Objectives
- Recognize the functions and effects of economic policies on the supply of loanable funds and investment rates.
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