Solved

Which of the Following Occurs If the Real Interest Rate

Question 20

Multiple Choice

Which of the following occurs if the real interest rate falls?


A) The demand for loanable funds increases and the demand for loanable funds curve shifts rightward.
B) The demand for loanable funds decreases and the demand for loanable funds curve shifts leftward.
C) The quantity of loanable funds demanded increases and there is a movement down along the demand for loanable funds curve.
D) The quantity of loanable funds demanded decreases increases and there is a movement up along the demand for loanable funds curve.
E) The quantity of loanable funds demanded increases and the demand for loanable funds curve shifts rightward.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions