What effect will an increase in interest rates have

Reference no: EM133707480

Answer the four questions related to the market for loanable funds. Macmillan Learning

a. What effect will an increase in interest rates have on the quantity of loanable funds supplied?

b. As interest rate decreases, what happens to the quantity of loanable funds demanded?

c. Which of the terms acts as the "price" in the market for loanable funds?

d. If the projected rate of return for a project is less than the interest rate for a loan that is necessary to complete the project, how will the business considering the project act?

Reference no: EM133707480

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