If the Real Interest Rate Rises from 3 Percent to 5

question 49

Multiple Choice

If the real interest rate rises from 3 percent to 5 percent,

• A)the nominal interest rate falls.
• B)the demand for loanable funds curve shifts rightward.
• C)there is a movement up along the demand for loanable funds curve.
• D)the supply of loanable funds curve shifts rightward.
• E)there is a movement down along the supply of loanable funds curve.

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