According to the loanable funds theory, a fall in interest rates leads to ____________?

Question

Accepted Answer

Higher demand for funds - Under the loanable funds theory, when interest rates fall, the cost of borrowing becomes cheaper, which encourages businesses and consumers to borrow more. This results in higher demand for funds.

MCQ Detailed View

According to the loanable funds theory, a fall in interest rates leads to ____________?

Detailed Explanation

Discussion

Leave a Comment

MCQ Detailed View

According to the loanable funds theory, a fall in interest rates leads to ____________?

Detailed Explanation

Related Questions

In cash flow analysis, two projects are compared using a common life approach, which is classified as&#8230;

Other factors held constant, a project with lesser liquidity is usually due to ____________?

In capital budgeting, the Internal Rate of Return (IRR) of a project is classified as its ____________?&#8230;

In evaluating independent projects, the results of Internal Rate of Return (IRR) and Net Present Value&#8230;

Discussion

Leave a Comment

In cash flow analysis, two projects are compared using a common life approach, which is classified as…

In capital budgeting, the Internal Rate of Return (IRR) of a project is classified as its ____________?…

In evaluating independent projects, the results of Internal Rate of Return (IRR) and Net Present Value…