Author Question: The demand for loanable funds A) increases if wealth increases. B) increases if the expected ... (Read 120 times)

newyorker26 · **on:** Jun 29, 2018

The demand for loanable funds

A) increases if wealth increases.
B) increases if the expected rate of profit decreases.
C) increases in an expansion and decreases in a recession.
D) increases if population growth declines.
E) decreases in an expansion and increases in a recession.

Question 2

Ford Motor Corporation is considering purchasing new technology that will increase productivity by twenty percent. If Ford Motor Corporation decides to make this investment at the going real interest rate, then

A) Ford's profits will decline.
B) the demand for loanable funds increases.
C) the supply of loanable funds increases.
D) the quantity of loanable funds demanded increases.
E) saving increases.