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A Firm's Demand Curve for Loanable Funds Is

Question 118

Multiple Choice

A firm's demand curve for loanable funds is


A) the same as the marginal revenue product of capital curve
B) upward sloping because higher interest rates attract more loanable funds
C) the same as the marginal factor cost curve
D) horizontal because given the rate of interest, the firm can demand any quantity of loanable funds at that rate of interest
E) expressed in terms of physical product

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