If foreign income and wealth decrease, this would most likely a. not affect the market for loanable funds. b. cause the supply of loanable funds to increase. c. cause the supply of loanable funds to decrease. d. cause the demand for loanable funds to increase in order for foreigners to maintain consumption. e. cause the demand for loanable funds to decrease.
If foreign income and wealth decrease, this would most likely a. not affect the market for loanable funds. b. cause the supply of loanable funds to increase. c. cause the supply of loanable funds to decrease. d. cause the demand for loanable funds to increase in order for foreigners to maintain consumption. e. cause the demand for loanable funds to decrease.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
If foreign income and wealth decrease, this would most likely
a. not affect the market for loanable funds.
b. cause the supply of loanable funds to increase.
c. cause the supply of loanable funds to decrease.
d. cause the demand for loanable funds to increase in order for foreigners to maintain consumption.
e. cause the demand for loanable funds to decrease.
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