Question

Suppose the economies of China and India have begun to slow down very rapidly. Based on this scenario

a.GDP will be higher in the United States.

b.the demand curve for loanable funds will shift to the right.

c.interest rates on loanable funds will increase.

d.the quantity of investment increases.

Answer 1

The correct answer is C

Step-by-step explanation:

Economies means the state of the region or the country in relation to the consumption and the production of the services and the goods and also the supply of the money.

If the economies of the India and the China, will be slow down, then the loanable funds as well as the interest rates will increase because the money for liquidity will be negligible which lead to competition among using the money for personal consumption or to delay the consumption through lending the money out.