The Demand for Loanable Funds Curve Is Downward Sloping Because

question 152

Multiple Choice

The demand for loanable funds curve is downward sloping because

• A) as the interest rate falls business firms demand fewer loanable funds
• B) as the interest rate falls business firms demand more loanable funds
• C) as the interest rate rises business firms demand more loanable funds
• D) as the interest rate rises,the government demands more loanable funds
• E) as the interest rate rises,the government demands fewer loanable funds

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that a supplier is willing to sell at those prices.

Substitutes

Products or services that can be used in place of others to satisfy similar needs or desires, often influencing consumer choices and market dynamics.

Complements

Goods or services that are used together, where the consumption of one typically enhances the value or desire for the other.

Peter's Pizzeria

A hypothetical or specific restaurant business specializing in the preparation and sale of pizzas.