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If the price for loanable funds is less than the return on capital, then firms will

tifftran

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If the price for loanable funds is less than the return on capital, then firms will

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borrow in the loanable funds market and invest in capital goods, and as this happens, the quantity of capital decreases and its return rises.

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borrow in the loanable funds market and invest in capital goods, and as this happens, the quantity of capital increases and its return falls.

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not borrow in the loanable funds market, and over time the capital stock will decrease and the return on capital will fall.

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not borrow in the loanable funds market, and over time the capital stock will decrease and the return on capital will rise.

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Economics

Edition: 12^th

Author: Arnold

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onid

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More solutions for this book are available here

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tifftran Author

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Thank you, thank you, thank you!

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This helped my grade so much Perfect

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Just got PERFECT on my quiz

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