The upward-sloping supply of loanable funds curve assumes that
A) the higher the interest rate, the greater the supply of loanable funds.
B) the higher the price for loanable funds, the higher the quantity of loanable funds supplied.
C) the income effect of a higher interest rate outweighs the substitution effect.
D) supply of loanable funds is perfectly elastic.
Correct Answer:
Verified
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