Solved

The Quantity of Loanable Funds Demanded Increases If the Real

Question 3

Multiple Choice

The quantity of loanable funds demanded increases if the real interest rate falls, all other things remaining the same, because the real interest rate


A) determines the cost of living.
B) affects the supply of saving which, in turn, determines the quantity of investment.
C) affects the quantity of saving supplied.
D) is not related to the price of bonds and stocks.
E) is the opportunity cost of investment.

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents