Business, 15.02.2021 20:50 destinyharris8502

If the return on capital is 12% and the price for loanable funds is 14%, then:. a. currently businesses will not borrow loanable funds to invest in capital goods.
b. the return on capital will fall as the supply of capital decreases over time, and simultaneously, the price for loanable funds will increase as savers make even more savings available.
c. eventually the return on capital will decrease to the point where businesses will find it profitable to borrow loanable funds

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If the return on capital is 12% and the price for loanable funds is 14%, then:. a. currently busine...

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