Which Term Best Describes A Certificate Of Indebtedness That Specifies The Obligations Of The Borrower To The Holder A Bond B Stock C Mutual Fund D Savings Account? ANS: A bond is a certificate of indebtedness that specifies the obligations of the borrower to the holder of the bond, while stock represents a share of
Which Of The Following Is The Source Of Demand For Loanable Funds In An Open Economy? In an open economy, the supply of loanable funds comes from national saving (S), and the demand for loanable funds comes from domestic investment (I) and net capital outflow (NCO). Which of the following is a source of demand
What Would Most Likely Happen In The Market For Loanable Funds If The Government Were To Decrease The Tax Rate On Interest Income? What would happen in the market for loanable funds if the government were to decrease the tax rate on interest income? The supply of loanable funds would shift rightward and investment would
What Would Promote A Tight Money Policy? The central bank tightens policy or makes money tight by raising short-term interest rates through policy changes to the discount rate, also known as the federal funds rate. Boosting interest rates increases the cost of borrowing and effectively reduces its attractiveness. Why would any nation want a tight
What Effect Does A Rise In The Real Interest Rate Have On The Quantity Of Loanable Funds? What effect does a rise in the real interest rate have on the quantity of loanable funds? The supply curve for loanable funds slopes upward: the higher the interest rate, the greater the quantity of loanable funds supplied.