The Supply of Loanable Funds Curve Is Upward Sloping Because

question 47

Multiple Choice

The supply of loanable funds curve is upward sloping because a rise in the interest rate

• A) decreases the opportunity cost of firms' investment spending.
• B) increases the opportunity cost of firms' investment spending.
• C) decreases the opportunity cost to households of consuming.
• D) increases the opportunity cost to households of consuming.

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