Other things the same, a lower real interest rate decreases the quantity of
A) Loanable funds demanded.
B) Loanable funds supplied.
C) Domestic investment.
D) Net capital outflow.

Name: Other things the same, a lower real interest rate decreases the quantity of A) Loanable funds demanded. B) Loanable funds supplied. C) Domestic investment. D) Net capital outflow.
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Question

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A lower real interest rate makes saving less attractive, reducing the quantity of loanable funds supplied.

Other Things the Same, a Lower Real Interest Rate Decreases