If demand of loanable demands increases then borrowing cost of funds...

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If demand of loanable demands increases then borrowing cost of funds is

A. higher

B. zero

C. upside

D. lower

Answer: Option A

Solution (By Examveda Team)

If demand of loanable demands increases then borrowing cost of funds is higher. The demand for loanable funds represents the behavior of borrowers and the quantity of loans demanded. The lower the interest rate, the less expensive it is to borrow.

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