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If the Real Interest Rate Falls, There Is

Question 122

Multiple Choice

If the real interest rate falls, there is


A) an upward movement along the supply of loanable funds curve.
B) a downward movement along the supply of loanable funds curve.
C) a rightward shift of the supply curve of loanable funds and no shift in the demand for loanable funds curve.
D) a leftward shift of the supply of loanable funds curve and no shift in the demand for loanable funds curve.
E) a leftward shift of the supply of loanable funds curve and a rightward shift in the demand for loanable funds curve.

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