Multiple Choice
A fall in the real interest rate
A) increases the quantity of loanable funds demanded because firms will want to borrow more
B) decreases the quantity of loanable funds demanded because firms will want to borrow less.
C) increases the quantity of loanable funds supplied because firms will want to borrow more.
D) decreases the quantity of loanable funds supplied because firms will want to borrow less.
Correct Answer:
Verified
Correct Answer:
Verified
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