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The Demand Curve for Loanable Funds Slopes Down Because

Question 74

Multiple Choice

The demand curve for loanable funds slopes down because


A) at lower bond prices more loanable funds will be supplied.
B) lower interest rates reduce the inflation rate.
C) an increase in the interest rate makes borrowers more willing and able to demand more funds.
D) a decrease in the interest rate makes borrowers more willing and able to demand more funds.

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