Other things the same, a higher real interest rate
A)decreases the quantity of loanable funds supplied.
B)raises domestic investment.
C)raises loanable funds demanded.
D)raises the quantity of loanable funds supplied.

Question

Quizplus · Accepted Answer

A higher real interest rate makes saving more attractive, which increases the quantity of loanable funds supplied as people are more willing to lend their money in exchange for higher returns.

Other Things the Same, a Higher Real Interest Rate