If the demand for loanable funds shifts right, then the real interest rate
A) and the equilibrium quantity of loanable funds both fall.
B) falls and the equilibrium quantity of loanable funds rises.
C) and the equilibrium quantity of loanable funds both rise.
D) rises and the equilibrium quantify of loanable funds falls.
Correct Answer:
Verified
Q148: Figure 32-2 Q149: The theory of purchasing-power parity implies that Q150: If the supply of dollars in the Q151: If the real exchange rate for the Q152: In the open-economy macroeconomic model, the key Q154: Figure 32-1 Q155: Figure 32-3 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
Refer to the following diagram of