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

Question

Quizplus · Accepted Answer

The demand to borrow function shows the relationship between the interest rate and the quantity of borrowing demanded. As the interest rate decreases, the quantity of borrowing demanded increases, and vice versa. This inverse relationship results in a downward-sloping demand curve. Therefore, option B is the correct choice.

The Demand to Borrow Function Is