When there is a fixed supply of loanable funds, an increase in investment demand results in a (n) : ?

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Franco Jefferson

29 May, 17:34

When there is a fixed supply of loanable funds, an increase in investment demand results in a (n) : ?

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Lorena Munoz · Answer 1

When there is a fixed supply of loan able funds, an increase in investment demand results in a "higher interest rates".

An interest rate refers to the measure of amount of interest due per period, as an extent of the sum loaned, saved or acquired (called the principal sum). The total interest on a sum loaned or obtained relies upon the essential whole, the financing cost, the intensifying recurrence, and the time allotment over which it is loaned, saved or acquired.