Answer:
d. negative relation between the real interest rate and investment.
Step-by-step explanation:
The demand curve for loanable funds is a downward sloping curve, with interest as the independent variable.
Such because 'demand' for 'investment' i.e loanable funds is inversely related to 'price' of loanable funds i.e their interest.
- At higher interest rate : loanable funds & investment is expensive, so it is demanded less
- At lower interest rate : loanable funds & investment is cheaper, so it is demanded more.