In the market for loanable funds, the demand curve:

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The demand curve in the market for loanable funds is downward-sloping because it represents the amount of borrowing that firms and individuals are willing and able to undertake at different interest rates. As interest rates increase, borrowing becomes more expensive, and fewer people are willing to take out loans or invest in projects that require financing. This results in a decrease in the quantity of loanable funds demanded, which is reflected in the downward slope of the demand curve.

In the Market for Loanable Funds, the Demand Curve