Multiple Choice
As real interest rates fall,firms desire to
A) buy more new equipment and buildings.This response helps explain why the supply of loanable funds is upward sloping.
B) buy more new equipment and buildings.This response helps explain why the demand for loanable funds is downward sloping.
C) buy less new equipment and buildings.This response helps explain why the supply of loanable funds is upward sloping.
D) buy less new equipment and buildings.This response helps explain why the demand for loanable funds is downward sloping.
Correct Answer:

Verified
Correct Answer:
Verified
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