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An increase in the real interest rate does which of the following? A) Reduces the demand for loanable funds. B) Reduces saving. C) Reduces consumption

An increase in the real interest rate does which of the following?

A) Reduces the demand for loanable funds.

B) Reduces saving.

C) Reduces consumption spending.

D) Increases the demand for loanable funds.

I know the answer is C, but I don't know why the A is incorrect. cause the IR increase, the cost of the loan would rise too. I appreciate for you explaination

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