The demand to borrow function is:
A) upward sloping.
B) downward sloping.
C) horizontal.
D) vertical.

Question

Quizplus · Accepted Answer

The demand to borrow function is downward sloping. This means that as the interest rate increases, the quantity of loans demanded decreases, and as the interest rate decreases, the quantity of loans demanded increases. This is because borrowers will only be willing to borrow at lower interest rates, as higher interest rates will make borrowing more expensive.

The Demand to Borrow Function Is