The demand for loanable funds curve shows that as the ________ interest rate increases, there will be a ________ the curve.
A)real; rightward shift in
B)nominal; movement down along
C)real; movement up along
D)nominal; rightward shift in

Question

Quizplus · Accepted Answer

The demand for loanable funds curve indicates that as the real interest rate increases, there is a movement up along the curve, reflecting a decrease in the quantity of loanable funds demanded.

The Demand for Loanable Funds Curve Shows That as the ________