Top Posters
Since Sunday
2
g
1
New Topic  
kickergb40 kickergb40
wrote...
Posts: 171
Rep: 0 0
A year ago

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



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.



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



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



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



b and c

Textbook 
Economics

Economics


Edition: 12th
Author:
Read 79 times
1 Reply
Replies
Answer verified by a subject expert
GremGrem
wrote...
Posts: 134
Rep: 0 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

kickergb40 Author
wrote...

A year ago
Smart ... Thanks!
wrote...

Yesterday
Thanks for your help!!
wrote...

2 hours ago
This calls for a celebration Person Raising Both Hands in Celebration
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  1176 People Browsing
Related Images
  
 355
  
 438
  
 1178
Your Opinion
What's your favorite math subject?
Votes: 701

Previous poll results: How often do you eat-out per week?