Assume that the demand and supply of loanable funds both
decrease. This would cause the equilibrium
quantity of loanable funds to decrease and the equilibrium
interest rate to increase.
quantity of loanable funds to increase and the equilibrium
interest rate to decrease.
interest rate to increase, but the new equilibrium quantity
would be indeterminate.
interest rate to decrease, but the new equilibrium quantity
would be indeterminate.
quantity of loanable funds to decrease, but the effect on the
equilibrium interest rate would be indeterminate.
Assume that the demand and supply of loanable funds both decrease. This would cause the equilibrium quantity of loanabl
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