Since the aggregate demand for loanable funds is the sum of the quantities demanded by the separate sectors, and since most of these sectors are likely to demand a larger quantity of funds at lower interest rates (other things being equal), the aggregate demand for loanable funds is positively related to interest rates at any point in time.

Question

Quizplus · Accepted Answer

The aggregate demand for loanable funds is negatively related to interest rates because, as interest rates decrease, more sectors are willing to borrow more funds, increasing the quantity demanded.

Since the Aggregate Demand for Loanable Funds Is the Sum