Which of the following is likely to happen if people suddenly become more willing to lend money?
a. An increase in demand for loanable funds will increase the interest rate.
b. An increase in the supply of loanable funds will increase the interest rate.
c. An increase in the supply of loanable funds will decrease the interest rate.
d. An increase in demand for loanable funds will decrease the interest rate.
e. A simultaneous increase in both the supply of and demand for loanable funds makes it impossible to predict what will happen to the rate of interest.
Question 2
The antitrust law that prohibits firms from combining or conspiring to restrain trade in interstate commerce is the:
a. Federal Trade Commission Act.
b. Clayton Act.
c. Sherman Antitrust Act.
d. Robinson-Patman Act.
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