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What relationship does the supply of loanable funds illustrate? Choose 1 answer: Choose 1 answer: (Choice A) The central bank responds to higher interest rates
What relationship does the supply of loanable funds illustrate? Choose 1 answer: Choose 1 answer: (Choice A) The central bank responds to higher interest rates by supplying more money. A The central bank responds to higher interest rates by supplying more money. (Choice B) Borrowers respond to an increase in interest rates by borrowing more money. B Borrowers respond to an increase in interest rates by borrowing more money. (Choice C) Investors respond to an increase in interest rates by investing more money. C Investors respond to an increase in interest rates by investing more money. (Choice D) Savers respond to an increase in interest rates by saving more money. D Savers respond to an increase in interest rates by saving more money. (Choice E) Individuals respond to lower interest rates by increasing the amount of money they hold. E Individuals respond to lower interest rates by increasing the amount of money they hold
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