Why does the demand curve for loanable funds slope downward from left to right? Oa) Interest rates on loanable funds typically decline over time. O b) The interest rate on a loan is directly proportional to demand. OC) The lower a loan's interest rate, the more firms want the loan. Od) Demand for loanable funds decreases more often than it increases. O e) The greater the demand for loanable funds, the more the curve shifts.
Why does the demand curve for loanable funds slope downward from left to right? Oa) Interest rates on loanable funds typically decline over time. O b) The interest rate on a loan is directly proportional to demand. OC) The lower a loan's interest rate, the more firms want the loan. Od) Demand for loanable funds decreases more often than it increases. O e) The greater the demand for loanable funds, the more the curve shifts.
Chapter21: Financial Markets, Saving, And Investment
Section: Chapter Questions
Problem 6P
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![Why does the demand curve for loanable funds slope downward from left to right?
a) Interest rates on loanable funds typically decline over time.
O b) The interest rate on a loan is directly proportional to demand.
Oc) The lower a loan's interest rate, the more firms want the loan.
d) Demand for loanable funds decreases more often than it increases.
O e) The greater the demand for loanable funds, the more the curve shifts.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7a48dea-fb5c-4654-8fb5-e0592b514973%2Fa7eb7320-80f9-4a26-98b4-6586ad8d2c33%2Fznuz0jk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Why does the demand curve for loanable funds slope downward from left to right?
a) Interest rates on loanable funds typically decline over time.
O b) The interest rate on a loan is directly proportional to demand.
Oc) The lower a loan's interest rate, the more firms want the loan.
d) Demand for loanable funds decreases more often than it increases.
O e) The greater the demand for loanable funds, the more the curve shifts.
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