does a rise in the real interest rate decrease the quantity of loanable funds demanded? The quantity of loanable funds demanded decreases because at a higher interest rate _______. A. fewer projects have an expected rate of profit below the real interest rate B. more projects have an expected rate of profit that exceeds the real interest rate C. banks want to lend more

Essentials of Economics (MindTap Course List)
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ISBN:9781337091992
Author:N. Gregory Mankiw
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Chapter18: Savings,investment And The Financial System
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Why, other things remaining the same, does a rise in the real interest rate decrease the quantity of loanable funds demanded? The quantity of loanable funds demanded decreases because at a higher interest rate _______.

A. fewer projects have an expected rate of profit below the real interest rate

B. more projects have an expected rate of profit that exceeds the real interest rate

C. banks want to lend more

D. fewer projects have an expected rate of profit that exceeds the real interest rate

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