Using the market for loanable funds,which of the following has the potential to raise the real interest rate?

Question

Quizplus · Accepted Answer

An increase in the demand for loanable funds will lead to a higher real interest rate as borrowers are willing to pay a higher price to access the funds they need. This increase in demand will shift the demand for loanable funds curve to the right, which will result in a new equilibrium point where the real interest rate is higher. B, C, and D do not necessarily have the potential to raise the real interest rate on their own.

Using the Market for Loanable Funds,which of the Following Has