In the Market for Loanable Funds, as the Real Interest

question 115

Multiple Choice

In the market for loanable funds, as the real interest rate rises, the ________ and the ________.

• A)quantity of loanable funds supplied increases; quantity of loanable funds demanded decreases
• B)quantity of loanable funds supplied decreases; quantity of loanable funds demanded increases
• C)supply of loanable funds increases; demand for loanable funds decreases
• D)supply of loanable funds decreases; demand for loanable funds increases
• E)quantity of loanable funds supplied increases; supply of loanable funds increases

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