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If the demand for loanable funds increases, what will happen to real interest rates and the international value of the U.S. dollar (USD)?

Real Interest Rates / International Value of USD

Increase / Increase***
Increase / Decrease
Decrease / No Change
Decrease / Decrease
Decrease / Increase

I've done some research and it's actually not decrease/decrease like I thought it would be... but I saw one that said it was the first option because "When Demand increases, R also increases. When the real interest rate increases, the international value of the dollar also increases." Would this be correct?

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2 answers
  1. correct.

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  2. ok thank you

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