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The fact that the equilibrium quantity of loanable funds may increase along with an increase in the real rate of interest A. assumes that demand for loanable funds increases with supply remaining unchanged.
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The fact that the equilibrium quantity of loanable funds may increase along with an increase in the real rate of interest A. assumes that demand for loanable funds increases with supply remaining unchanged. B. assumes that supply of loanable funds increases with demand remaining unchanged. C. contradicts the law of demand. D. assumes that demand for loanable funds decreases with supply remaining unchanged.

User Trigoman
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Answer:A. assumes that demand for loanable funds increases with supply remaining unchanged

Step-by-step explanation:

Loanable funds is the sum total of all the money people and entities in an economy have decided to save and lend out to borrowers as an investment rather than use for personal consumption. ... One way to make an investment is to lend money to borrowers at a rate of interest.

User Surya Prakash Tumma
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