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Home Q & A Board Other Fields Homework Help Business Economics
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kickergb40 kickergb40
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8 months ago

As the interest rate (price for loanable funds) decreases, businesses will



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find it less profitable to invest in capital goods, because the lower interest rate means that they will earn a lower return on their investments.



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find it less profitable to invest in capital goods, because their costs of production will be higher.



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increase their borrowings of loanable funds, because the cost of borrowing has declined relative to the benefits of borrowing.



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decrease their borrowings of loanable funds, because there will now be cheaper ways to produce goods than to employ roundabout methods of production.



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b and c

Textbook 
Economics

Economics


Edition: 12th
Author:
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GremGrem
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8 months ago
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kickergb40 Author
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8 months ago
Smart ... Thanks!
spaghetti
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Yesterday
This site is awesome
Harvinder
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2 hours ago
Good timing, thanks!
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