If the interest rate increases, then: a. the quantity saved will increase, but the quantity supplied of loanable funds will decrease. b. both the quantity saved and the quantity supplied of loanable funds will increase. c. both the quantity saved and the quantity supplied of loanable funds will decrease. d. the quantity saved will decrease, but the quantity supplied of loanable funds will increase.

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Business

Tyrese Henry

30 July, 13:21

If the interest rate increases, then: a. the quantity saved will increase, but the quantity supplied of loanable funds will decrease. b. both the quantity saved and the quantity supplied of loanable funds will increase. c. both the quantity saved and the quantity supplied of loanable funds will decrease. d. the quantity saved will decrease, but the quantity supplied of loanable funds will increase.

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Litzy Velez · Answer 1

If the interest rate increases, then both the quantity saved and the quantity supplied of loanable funds will increase.

Explanation:

Profit is the amount of money that borrowers receive if the creditor accepts a loan and the rate of interest is the percentage of the debt the lender pays to lease property.

As interest rates increase, both businesses and customers rising spending. That would reduce sales and reduce product costs.

At the other hand, with large interest rates declining, buyers and firms increase their spending, thus rising asset values.