An increase in the real interest rate results in a
A) None of the above.
B) leftward shift in the supply of loanable funds curve.
C) rightward shift in the supply of loanable funds curve.
D) movement along the supply of loanable funds curve.

Question

Quizplus · Accepted Answer

An increase in the real interest rate results in a movement along the supply of loanable funds curve, as it affects the quantity of funds supplied, not the position of the curve itself.

An Increase in the Real Interest Rate Results in a