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The Demand Curve for Loanable Funds Slopes

Question 85

Multiple Choice

The demand curve for loanable funds slopes:


A) upward, since it takes a higher rate of return to get more funds.
B) downward, because more potential projects yield 10% than yield 5%.
C) upward, because higher rates of return are necessary to cover higher costs.
D) downward, because demand is lower when the price to borrow money is higher.

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