Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. The supply and demand for loanable funds Which of the following is one of the reasons that the demand curve for loanable funds is
1. The supply and demand for loanable funds Which of the following is one of the reasons that the demand curve for loanable funds is downward sloping? A lower real interest rate makes borrowing less expensive. O A higher real interest rate encourages domestic investors to purchase foreign securities and discourages foreign investors from purchasing their own securities. O A higher real interest rate encourages people to save. O A lower real interest rate discourages people from saving. Which of the following is one of the reasons that the supply curve for loanable funds is upward sloping? O A lower real interest rate encourages domestic consumers to purchase foreign securities and discourages foreigners from purchasing domestic securities. O A higher real interest rate makes borrowing less expensive. O A lower real interest rate makes saving less appealing, O A lower interest rate makes borrowing less expensive
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started