As the _ interest rate increases, the quantity of loanable funds demanded .
A) real; decreases
B) nominal; increases
C) nominal; decreases
D) real; increases

Name: As the _ interest rate increases, the quantity of loanable funds demanded . A) real; decreases B) nominal; increases C) nominal; decreases D) real; increases
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Question

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As the real interest rate increases, borrowing becomes more expensive, leading to a decrease in the quantity of loanable funds demanded.

As the _ Interest Rate Increases, the Quantity of Loanable