Asked by
Morgan Garza
on Nov 16, 2024
Verified
If the demand for loanable funds shifts to the left, then the equilibrium interest rate
A) and quantity of loanable funds rises.
B) rises and the quantity of loanable funds falls.
C) falls and the quantity of loanable funds rises.
D) and quantity of loanable funds falls.
Equilibrium Interest Rate
The interest rate at which the demand for funds (borrowing) equates with the supply of funds (savings) in the financial market.
Demand for Loanable Funds
The desire for borrowing money, driven by the need for investment funds across the economy.
Quantity of Loanable Funds
This refers to the amount of money available for borrowing in the financial market at a particular rate of interest.
- Get familiar with the reasons behind variations in the supply and demand for loanable funds.
Verified Answer
JB
Learning Objectives
- Get familiar with the reasons behind variations in the supply and demand for loanable funds.