The Demand for Loanable Funds Curve Slopes Downward Because the

Multiple Choice

The demand for loanable funds curve slopes downward because the

A) higher the real interest rate, the lower the cost of investment.
B) expected rate of profit is related positively to the real interest rate.
C) price of bonds and stocks is not related to the real interest rate.
D) real interest rate is the opportunity cost of investment.
E) expected rate of profit is factor that "rewards" firms for their investment.