The demand curve for loanable funds is downward sloping because

A. people save more at higher interest rates.
B. more investments are profitable at low interest rates than at high interest rates.
C. future income is more valuable now at higher interest rates than at low interest rates.
D. Usury laws increase the quantity of funds demanded at low interest rates but do not affect the quantity of funds demanded at high interest rates.


Answer: B

Economics

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