The slope of the demand for loanable funds curve represents the

A) positive relation between the real interest rate and investment.
B) negative relation between the real interest rate and investment.
C) positive relation between the real interest rate and saving.
D) negative relation between the real interest rate and saving.

Demand Curve

An illustration that depicts the inverse relationship between the price of an item and the quantity demanded by consumers within a certain period.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing and the real yield to lenders or investors.

Investment

The process of spending money to purchase assets with the expectation of generating future profits or income.