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Tiffany Jones
on Nov 11, 2024

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An increase in the interest rate,other things constant,will:

A) shift the supply of loanable funds curve to the left.
B) shift the supply of loanable funds curve to the right.
C) increase the quantity of loanable funds supplied.
D) shift the demand for loanable funds curve to the left.
E) increase the quantity of loanable funds demanded.

Interest Rate

The percentage of a loan amount charged by a lender to a borrower for the use of assets, which can vary based on factors like inflation, the time value of money, and the risk involved.

Loanable Funds

The market where savers supply funds to borrowers, typically through financial intermediaries.

Quantity Supplied

The total amount of a specific good or service that producers are willing and able to sell at a given price, during a certain time period.

  • Analyze how variations in the supply and demand for loanable funds impact the interest rate.
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Jonathan NkinduNov 11, 2024
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