Other Things Remaining the Same, as the Real Interest Rate

question 83

Multiple Choice

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

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

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