Other things the same,an increase in the interest rate
A)would shift the demand for loanable funds to the right.
B)would shift the demand for loanable funds to the left.
C)would increase the quantity of loanable funds demanded.
D)would decrease the quantity of loanable funds demanded.

Question

Quizplus · Accepted Answer

An increase in interest rates would increase the cost of borrowing, resulting in a decrease in the quantity of loanable funds demanded. This is because fewer people and businesses would be willing to take out loans at higher interest rates, resulting in a leftward shift in the demand for loanable funds.

Other Things the Same,an Increase in the Interest Rate