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The Supply of Loanable Funds Curve Is

Question 87

Multiple Choice

The supply of loanable funds curve is


A) upward sloping because fewer people are persuaded to forgo current consumption as the interest rate rises
B) downward sloping, showing that more investment will be undertaken as inflation decreases
C) upward sloping because the opportunity cost of goods and services that must be forgone increases
D) downward sloping, showing that as more funds are made available, the risk cost of loaning funds decreases
E) usually horizontal

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