Q519
When business companies started investing with funds generated internally is a point which shows that
A.
cost of loanable funds is high
AnswerB.
cost of loanable fund is low
C.
equilibrium is zero
D.
equilibrium is negative
Answer: Option A
Solution
Answer: Option A
Solution:
When business companies started investing with funds generated internally is a point which shows that cost of loanable funds is high. Loanable funds is the sum total of all the money people and entities in an economy have decided to save and lend out to borrowers as an investment rather than use for personal consumption.