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  3. Study Set
    Foundations of Macroeconomics Study Set 2
  4. Exam
    Exam 10: Finance, Saving, and Investment
  5. Question
    If the Real Interest Rate
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If the Real Interest Rate

Question 3

Question 3

Multiple Choice

If the real interest rate


A) rises, the supply of loanable funds curve shifts rightward.
B) falls, the supply of loanable funds curve shifts leftward.
C) falls, there is a movement along the supply of loanable funds curve to a higher quantity of saving.
D) falls, there is a movement along the supply curve of loanable funds to a lower quantity of loanable funds .
E) rises, the supply of loanable funds curve shifts leftward.

Correct Answer:

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