Other Things Remaining the Same,as the Real Interest Rate Increases

question 42

Multiple Choice

Other things remaining the same,as the real interest rate increases,

• A)firms will borrow less funds.
• B)the demand for loanable funds curve shifts leftward.
• C)firms will borrow more funds.
• D)firms will purchase new capital with its own funds instead of taking a loan.
• E)firms' demand for funds will not change.

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