Multiple Choice
If people suddenly become more willing to lend money,what happens to the equilibrium rate of interest?
A) An increase in demand for loanable funds will increase the interest rate.
B) An increase in the supply of loanable funds will increase the interest rate.
C) An increase in the supply of loanable funds will decrease the interest rate.
D) An increase in demand for loanable funds will decrease the interest rate.
E) A simultaneous increase in both the supply of and demand for loanable funds makes it impossible to predict what will happen to the rate of interest.
Correct Answer:
Verified
Correct Answer:
Verified
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