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Under the Loanable Funds Theory of Interest Rate, Which of the Following

Question 36

Multiple Choice

Under the loanable funds theory of interest rate, which of the following statements is correct?


A) The demand curve for loanable funds is upward sloping with higher demand for funds from businesses and governments at higher rates.
B) The supply curve for loanable funds is downward sloping with a higher supply of funds supplied by investors at lower rates.
C) The demand curve for loanable funds is downward sloping with a higher demand for funds from businesses and governments at lower rates
D) The supply curve for loanable funds is upward sloping with a higher supply of funds provided by investors at higher rates
E) Both c and d

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