Choose the best answer in the brackets 1) According to the loanable funds theory, a decrease in trust to commercial banks among the population will result in a decrease of (Choose one: Loanable funds supply, inflation, velocity of money, demand of loanable funds)and will result in(Choose one: decrease, no change, increase) in market interest rates. 2) As a result of the changes described in 1), the private investments into factories and equipment will (Choose one:fall, be crowded out by the government, rise) because(Choose one: more investor would be attracted by highest interest rates, more project would be attractive, fewer intestors would be attracted by lower interest rates, less project would be considered attractive) 3) If the government simultaneously decides to increase the issue of the government bonds, according to the loanable funds theory, (Choose one: inflation, velocity of money, loanable funds supply, demand for loanable funds) will rise, leading to (Choose one: further growth of market interest rate, attracting more investments, additional stimuli to the economics)
Choose the best answer in the brackets
1) According to the loanable funds theory, a decrease in trust to commercial banks among the population will result in a decrease of (Choose one: Loanable funds supply, inflation, velocity of money,
2) As a result of the changes described in 1), the private investments into factories and equipment will (Choose one:fall, be crowded out by the government, rise) because(Choose one: more investor would be attracted by highest interest rates, more project would be attractive, fewer intestors would be attracted by lower interest rates, less project would be considered attractive)
3) If the government simultaneously decides to increase the issue of the government bonds, according to the loanable funds theory, (Choose one: inflation, velocity of money, loanable funds supply, demand for loanable funds) will rise, leading to (Choose one: further growth of market interest rate, attracting more investments, additional stimuli to the economics)
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