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An increase in the rate of return on an investment

A. would most likely increase the supply of loanable funds

B. would most likely increase the interest rate

C. would most likely decrease the interest rate

D. would most likely decrease the supply of loanable funds

E. would most likely decrease the quantity demanded of loanable funds

 

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Vaishali Yadav
Vaishali YadavLv10
12 Jan 2021

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1. Recently the Fed has been engaging in a contraction policy by selling Treasurysecurities to the non-bank public (suppose hypothetically this entails a sale of

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C. The returns Martha requires on her bond investments will not change.
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