What effect will an increase in interest rates have on the quantity of loanable funds supplied?
a. There will be no change in quantity supplied.
b. Quantity supplied will decrease.
c. Quantity supplied will increase.
d. Some lenders will offer more while others offer less.
As interest rate decreases, what happens to the quantity of loanable funds demanded?
a. There will be no change in quantity demanded.
b. Some borrowers will demand more funds while others will demand less.
c. Quantity demanded will decrease.
d. Quantity demanded will increase.
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