Other things remaining the same, the _{--------------------}_{--------------------}the real interest rate, the A)higher; greater the quantity of loanable funds demanded B)lower; greater the quantity of loanable funds demanded C)lower; greater the quantity of loanable funds supplied D)lower; greater the demand for loanable funds E)higher; greater the demand for loanable funds

Question

Quizplus · Accepted Answer

When the real interest rate is lower, borrowing becomes cheaper, leading to an increase in the quantity of loanable funds demanded.

Other Things Remaining the Same, the ----------------------------------------the Real Interest Rate

Other Things Remaining the Same, the _{--------------------}_{--------------------}the Real Interest Rate