In the Market for Loanable Funds, There Are Indications of a Forthcoming

Multiple Choice

In the market for loanable funds, there are indications of a forthcoming recession with concurrent reductions in job security and a lower demand for products. What changes should be expected in the market for loanable funds due to these events?

A) The interest rate will rise, but there is uncertainty about any change in the amount of borrowed funds.
B) The interest rate will fall, but there is uncertainty about any change in the amount of borrowed funds.
C) The amount of funds borrowed will rise but there is uncertainty about the direction of any change in interest rates.
D) The amount of borrowed funds will fall but there is uncertainty about the direction of any change in interest rates.