Answer all 20 multiple choice questions. Write the letter of the response that best completes the question on the line provided. Answer the 4 short essay questions and the long essay question.
Interest is the price paid for early availability of funds.
Suppose business decision makers become more optimistic about future economic conditions and desire additional funds to expand their plant capacity. The demand for loanable funds will increase. The demand for loanable funds will decrease. The supply for loanable funds will increase. The supply for loanable funds will decrease.