As the Real Interest Rate Increases, the Quantity of Loanable

question 204

Multiple Choice

As the real interest rate increases, the quantity of loanable funds demanded . Therefore, the demand for loanable funds curve plotted against the real interest rate is .

• A) increases; upward sloping
• B) increases; downward sloping
• C) decreases; downward sloping
• D) decreases; upward sloping

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