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Why Does the Demand Curve for Loanable Funds Slope Downward

Question 122

Multiple Choice

Why does the demand curve for loanable funds slope downward from left to right?


A) Interest rates on loanable funds typically decline over time.
B) The interest rate on a loan is directly proportional to demand.
C) The higher a loan's interest rate,the fewer firms want the loan.
D) Demand for loanable funds decreases more often than it increases.
E) The greater the demand for loanable funds,the more the curve shifts.

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