The demand for loanable funds slopes A) downward because NPV falls as
The demand for loanable funds slopes
A) downward because NPV falls as interest rates fall.
B) downward because NPV falls as interest rates rise.
C) downward because NPV falls as money enters the economy.
D) upward because at higher interest rates people are more willing to save.
E) upward because at higher interest rates the stock market is a less attractive investment.
ANSWER
B
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