Fred is considering expanding his dress shop. If interest rates rise he is a less likely to expand. This illustrates why the demand for loanable funds slopes downward. b more likely to expand. This illustrates why the supply of loanable funds slopes upward. c more likely to expand. This illustrates why the demand for loanable funds slopes upward. d less likely to expand. This illustrates why the supply of loanable funds slopes downward.
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