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Factor Markets: Loanable Funds Market & Supply Curve

APMICR-PK4WYN

Why is the supply curve sloping up in the simple loanable funds market model?

A

Businesses will invest more if interest rates are higher.

B

Households will delay more purchases if interest rates are higher.

C

Businesses will borrow less if interest rates lower.

D

Households will increase the amount they save if interest rates fall.

E

Businesses will increase the amount they borrow for investments if interest rates are lower.