The Real Interest Rate Is_{--------------------}related to the Supply of Loanable

Multiple Choice

The real interest rate is_{--------------------}related to the supply of loanable funds because_{--------------------}

A) negatively; the opportunity cost of consumption expenditure increases as the real interest rate rises
B) positively; people are motivated to increase their consumption expenditure as the real interest rate rises
C) negatively; people are motivated to save more as the real interest rate rises
D) positively; the opportunity cost of consumption expenditure increases as the real interest rate rises
E) None of the above answers are correct.