Multiple Choice QuestionDue to technological improvements a firm now expects a 15% increase on the rate of return of an investment as opposed to a 7% return on investment. They demanded no ($0) loanable funds at an interest rate of 10%. Would it be in the best interest of the firm to reconsider its level of demand of loanable funds?Multiple choice question.No, because its rate of return is now greater than the cost of the loanable funds.Yes, because its rate of return is now less than the cost of the loanable funds.Yes, because its rate of return is now greater than the cost of the loanable funds.No, because its rate of return is now less than the cost of the loanable funds.

Multiple Choice QuestionAnything that increases the rate of return on potential investments will increase the demand for which of the following?Multiple choice question.Government bondsLoanable fundsEconomic rentsHousehold spending

Multiple Choice QuestionWhich factor would increase the demand for loanable funds?Multiple choice question.Anything that increases the rate of return on potential investmentsAnything that would cause households to be thriftierAnything that would cause households to be less thriftyAnything that decreases the rate of return on potential investments

Multiple Select QuestionSelect all that applyWhich of the following exemplifies how the interest rate rations the available supply of loanable funds to investment projects that have expected rates of return at or above the interest rate cost of borrowed funds?Multiple select question.If the expected rate of return on capital is 16%, an industry will find it profitable to expand its capital at 8% interestIf the expected rate of return on capital is 6%, an industry will find it unprofitable to expand its capital at 8% interestIf the expected rate of return on capital is 15%, an industry will find it unprofitable to expand its capital at 10% interestIf the expected rate of return on capital is 10%, an industry will find it profitable to expand its capital at 12% interest

Multiple Choice QuestionWhich of the following explains the interest rate in terms of the supply of and demand for funds available for lending and borrowing?Multiple choice question.The loanable funds theory of principalThe loanable funds theory of incomeThe loanable funds theory of interestThe supply and demand for money

All other things being equal, a decrease in the demand for loanable funds:Group of answer choicesmight not have any effect on the interest rate.results from an increase in business circumstances and a decrease in the level of savings.drives the interest rate down.drives the interest rate up.