When the interest rate decreases, the amount of loanable funds demanded in the market:
a) decreases; this causes a movement up and to the left along the demand curve.
b) increases; this causes a movement down and to the right along the demand curve.
c) decreases; the entire demand curve shifts left.
d) increases; the entire demand curve shifts right.
Ans: b) increases; this causes a movement down and to the right along the demand curve.
Economics
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