Which of the following is one of the reasons that the demand curve for loanable funds is downward sloping? A lower real interest rate discourages domestic investors from purchasing foreign securities and encourages foreign investors to purchase domestic securities. OA higher real interest rate encourages people to save. OA lower real interest rate discourages people from saving. OA higher real interest rate makes borrowing more expensive. Which of the following is one of the reasons that the supply curve for loanable funds is upward sloping? OA higher real interest rate makes borrowing less expensive. OA lower interest rate makes borrowing less expensive. A lower real interest rate encourages domestic consumers to purchase foreign securities and discourages foreigners from purchasing domestic securities. A lower real interest rate makes saving less appealing.
Which of the following is one of the reasons that the demand curve for loanable funds is downward sloping? A lower real interest rate discourages domestic investors from purchasing foreign securities and encourages foreign investors to purchase domestic securities. OA higher real interest rate encourages people to save. OA lower real interest rate discourages people from saving. OA higher real interest rate makes borrowing more expensive. Which of the following is one of the reasons that the supply curve for loanable funds is upward sloping? OA higher real interest rate makes borrowing less expensive. OA lower interest rate makes borrowing less expensive. A lower real interest rate encourages domestic consumers to purchase foreign securities and discourages foreigners from purchasing domestic securities. A lower real interest rate makes saving less appealing.
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: An Introduction To Basic Macroeconomic Markets
Section: Chapter Questions
Problem 6CQ
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Transcribed Image Text:Which of the following is one of the reasons that the demand curve for loanable funds is downward sloping?
A lower real interest rate discourages domestic investors from purchasing foreign securities and encourages foreign investors to purchase
domestic securities.
A higher real interest rate encourages people to save.
OA lower real interest rate discourages people from saving.
OA higher real interest rate makes borrowing more expensive,
Which of the following is one of the reasons that the supply curve for loanable funds is upward sloping?
A higher real interest rate makes borrowing less expensive.
OA lower interest rate makes borrowing less expensive.
OA lower real interest rate encourages domestic consumers to purchase foreign securities and discourages foreigners from purchasing
domestic securities.
A lower real interest rate makes saving less appealing.
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