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Q:
A) people would want to lend less, making the supply of loanable funds decrease. | B) people would want to lend less, making the quantity of loanable funds supplied decrease. |
C) people would want to lend more, making the supply of loanable funds increase. | D) people would want to lend more, making the quantity of loanable funds supplied increase. |
Answer: D) people would want to lend more, making the quantity of loanable funds supplied increase.
Explanation:
Explanation:
Other things the same, when the interest rate rises people would want to lend more, making the quantity of loanable funds supplied increase.