In the market for loanable funds,the demand curve:
A)represents savers.
B)is downward sloping.
C)reflects that more people will choose to save the higher is the interest rate.
D)All of these are correct.

Question

Quizplus · Accepted Answer

The demand curve in the market for loanable funds is downward sloping, as lower interest rates will encourage borrowers to demand more funds, while higher interest rates will discourage borrowing and reduce the demand for loanable funds. The other options are incorrect because the demand curve represents borrowers, not savers, and it does not reflect that more people will choose to save at higher interest rates (this would be reflected in the supply curve).

In the Market for Loanable Funds,the Demand Curve