A fall in the real interest rate brings a

Name: A fall in the real interest rate brings a
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Question

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A fall in the real interest rate reduces the return on savings, making people less willing to save. As a result, the quantity supplied of loanable funds decreases, leading to a movement down along the supply of loanable funds curve. This is because at a lower real interest rate, the opportunity cost of saving is lower, making people less willing to save and lend out their money.

A Fall in the Real Interest Rate Brings a