The Demand Curve for Loanable Funds Is

question 48

Multiple Choice

The demand curve for loanable funds is

• A)upward sloping, indicating that lower interest rates are associated with a lower demand for loanable funds.
• B)downward sloping, indicating that businesses will increase their demand at lower interest rates, but that consumers will probably decrease the supply of loanable funds at lower interest rates.
• C)downward sloping, indicating that both businesses and consumers will increase the quantity demanded of loanable funds as the interest rate decreases.
• D)horizontal at the equilibrium interest rate.

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