When forecasting future interest rates, if the net demand for funds (ND)becomes _____, there will be ______ adjustment in interest rates.
A)negative; an upward
B)negative; no
C)positive; an upward
D)positive; a downward

Question

Quizplus · Accepted Answer

When the net demand for funds becomes positive, indicating that the demand for funds exceeds the supply, there will be an upward adjustment in interest rates to balance the demand with the available supply.

When Forecasting Future Interest Rates, If the Net Demand for Funds