SOLVED

 141. The concept of present value helps explain why a. investment decreases when the interest rate increases, and it also helps explain why the quantity of loanable funds demanded decreases when the interest rate increases. b. investment decreases when the interest rate increases, but it is of no help in explaining why the quantity of loanable funds demanded decreases when the interest rate increases. c. the quantity of loanable funds demanded decreases when the interest rate increases, but it is of no help in explaining why investment decreases when the interest rate increases. d. None of the above are correct; the concept of present value is of no help in explaining why either investment or the quantity of loanable funds demanded decreases when the interest rate increases.  142. Which of the following concepts is most helpful in explaining why investment increases when the interest rate falls? a. deadweight loss b. present value c. economic growth d. financial intermediation  143. Other things the same, an increase in the interest rate makes the quantity of loanable funds demanded a. rise, and investment spending rise. b. rise, and investment spending fall. c. fall, and investment spending rise. d. fall, and investment spending fall.  144. Other things the same, an increase in the interest rate makes the quantity of loanable funds supplied a. rise, and investment spending rise. b. rise, and investment spending fall. c. fall, and investment spending rise. d. fall, and investment spending fall.  145. Which of the following is the largest? a. the future value of $250 with 3% interest for 2 years b. the future value of $250 at 2% interest for 3 years c. the present value of $250 to be paid in two years when the interest rate is 3% d. the present value of $250 to be paid in three years when the interest rate is 2%  Â