The slope of the demand for loanable funds curve represents the Group of answer choices positive relation between the real inter

Question

3 years ago

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The slope of the demand for loanable funds curve represents the Group of answer choices positive relation between the real inter

est rate and investment. negative relation between the real interest rate and saving. positive relation between the real interest rate and saving. negative relation between the real interest rate and investment.

Business

1 answer:

Andreyy89 · Answer 1 · 2022-06-07T07:00:14+03:00

Answer:

negative relation between the real interest rate and investment.

Explanation:

Loanable funds can be defined as the total income that are being saved and lend out, other than personal use or as consumption.

Also, it's the total amount investors chooses to borrow to fund their projects.

The slope of the demand for loanable funds curve represents the negative relation between the real interest rate and investment.

This slope of the demand for loanable funds usually slopes downward.

The equilibrium interest rate and quantity of loanable funds falls, when the demand for loanable funds shifts to the left.