Reasons the demand for loanable funds is downward sloping

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In a large open economy, what is one of the reasons the demand for loanable funds is downward sloping?

A. A lower real interest rate discourages domestic consumers from buying foreign assets and encourages foreigners to buy domestic assets.

B. A higher real interest rate encourages people to save.

C. A lower real interest rate discourages investment.

D. A higher real interest rate makes borrowing more expensive.

Reference no: EM13898771

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