Multiple Choice
Which of the following occurs if the real interest rate falls?
A) The quantity of loanable funds demanded increases and there is a movement down along the demand for loanable funds curve.
B) The quantity of loanable funds demanded increases and the demand for loanable funds curve shifts rightward.
C) The demand for loanable funds decreases and the demand for loanable funds curve shifts leftward.
D) The quantity of loanable funds demanded decreases increases and there is a movement up along the demand for loanable funds curve.
E) The demand for loanable funds increases and the demand for loanable funds curve shifts rightward.
Correct Answer:
Verified
Correct Answer:
Verified
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