As the ________ interest rate increases, the quantity of loanable funds demanded ________.
A) real; increases
B) real; decreases
C) nominal; increases
D) nominal; decreases

Name: As the ________ interest rate increases, the quantity of loanable funds demanded ________. A) real; increases B) real; decreases C) nominal; increases D) nominal; decreases
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Question

Quizplus · Accepted Answer

As the real interest rate increases, the cost of borrowing increases, leading to a decrease in the quantity of loanable funds demanded.

As the ________ Interest Rate Increases, the Quantity of Loanable