In the market for loanable funds, as the real interest rate rises, the _______ and the _______ .
A) quantity of loanable funds supplied increases; quantity of loanable funds demanded decreases
B) supply of loanable funds increases; demand for loanable funds decreases
C) supply of loanable funds decreases; demand for loanable funds increases
D) quantity of loanable funds supplied decreases; quantity of loanable funds demanded increases
E) quantity of loanable funds supplied increases; supply of loanable funds increases
Correct Answer:
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Q81: Refer to the figure below to answer
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