What Effect Does a Fall in the Real Interest Rate

question 169

Multiple Choice

What effect does a fall in the real interest rate have on the quantity of loanable funds?

• A) It increases the quantity demanded and decreases the quantity supplied.
• B) It decreases both the quantity demanded and supplied.
• C) It increases both the quantity demanded and supplied.
• D) It decreases the quantity demanded and increases the quantity supplied.

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