The Supply Curve of Loanable Funds Is Upsloping Because

question 195

Multiple Choice

The supply curve of loanable funds is upsloping because

• A) businesses find more investments to be profitable at low interest rates than at high interest rates.
• B) government budget deficits vary inversely with the equilibrium interest rate.
• C) households are willing to save more at high interest rates than they are at low interest rates.
• D) banks lend more at low interest rates than they do at high interest rates.

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