Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Question 37
37.The demand curve for loan-able funds slopes downward to the right because:
a. Firms borrow money only when interest rates are low.
b. An increase in the supply of loanable funds generally raises interest rates.
c. There are more projects that are profitable at low than at high rates of interest.
d. The lower the asset's rate of return, the higher the interest rate.
e. Money is not as profitable when it price is high.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff727df01-e3d8-4793-8b07-6230923e67ae%2Fb3e7f5d7-e544-49e0-a53b-4e58ffc486a9%2Fbo7c8qm.png&w=3840&q=75)
Transcribed Image Text:Question 37
37.The demand curve for loan-able funds slopes downward to the right because:
a. Firms borrow money only when interest rates are low.
b. An increase in the supply of loanable funds generally raises interest rates.
c. There are more projects that are profitable at low than at high rates of interest.
d. The lower the asset's rate of return, the higher the interest rate.
e. Money is not as profitable when it price is high.
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