In the market for loanable funds, as the real interest rate rises, the ________ and the ________.
A) quantity of loanable funds supplied increases; quantity of loanable funds demanded decreases
B) quantity of loanable funds supplied decreases; quantity of loanable funds demanded increases
C) supply of loanable funds increases; demand for loanable funds decreases
D) supply of loanable funds decreases; demand for loanable funds increases
E) quantity of loanable funds supplied increases; supply of loanable funds increases
Correct Answer:
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