Introduction to Economics 1 Deneme Sınavı Sorusu #837102

I.  The lower the interest rate is, the more capital the businesses will demand.

II. The more capital the companies demand, the lesser the funding it requires to finance.

III. The interest rate goes up, the price (the cost) of the current consumption will also go up.

Which of the statements for loanable funds market can be said to be true?


Only I

Only II

I and II

I and III

II and III


Yanıt Açıklaması:

I.  The lower the interest rate is, the more capital the businesses will demand.  (True)

II. The more capital the companies demand, the lesser the funding it requires to finance. (False, The more capital the companies demand, the greater the funding it requires to finance.)

III. The interest rate goes up, the price (the cost) of the current consumption will also go up. (True)

The answer is D.

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