In the loanable fund’s theory of interest determination, an increase in the productivity of capital equipment should lead to:

Related MCQs

• According to --------- theory of interest, the rate of Interest is the price of credit which is determined by the demand and supply for loanable funds.
• If savers decide to save more, ceteris paribus, the loanable funds theory predicts:
• According to ---------- theory, Interest is the reward for the productive use of the capital which is equal to the marginal productivity of physical capital.
• Loanable Fund theory is also known as-----------
• According to ------- theory interest arises on account of the productivity of capital.
• According to the liquidity preference theory of interest, an increase in uncertainty, other things being equal, will:
• In borrowing and lending of federal funds, the federal funds rate is result of function between
• In borrowing and lending of federal funds, federal funds rate is result of function between
• A large number (about 25%) of long-term mutual funds are _____________ funds, buying securities in proportions similar to those of a major stock index.
• Type of swaps in which fixed payments of interest are exchanged by two counterparties for floating payments of interest are called