In the open-economy macroeconomic model, a higher domestic interest rate reduces the quantity of loanable funds demanded

Name: In the open-economy macroeconomic model, a higher domestic interest rate reduces the quantity of loanable funds demanded
Brand: Quizplus
Rating: 4.8 (44 reviews)

Question

Quizplus · Accepted Answer

In the open-economy macroeconomic model, a higher domestic interest rate makes borrowing more expensive, thereby reducing the quantity of loanable funds demanded as firms and consumers are less inclined to take out loans at higher costs.

In the Open-Economy Macroeconomic Model, a Higher Domestic Interest Rate