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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? OA 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? OA 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. OA lower real interest rate makes saving less appealing. OA lower interest rate makes borrowing less expensive.

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? OA 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? OA 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. OA lower real interest rate makes saving less appealing. OA lower interest rate makes borrowing less expensive.

Brief Principles of Macroeconomics (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter8: Savings,investment And The Financial System
Section: Chapter Questions
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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? OA 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? OA 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. OA lower real interest rate makes saving less appealing, OA lower interest rate makes borrowing less expensive.
Transcribed Image Text: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? OA 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? OA 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. OA lower real interest rate makes saving less appealing, OA lower interest rate makes borrowing less expensive.
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