Assume the loanable funds market is in equilibrium. An increase in the demand for loanable funds will
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Assume the loanable funds market is in equilibrium. An increase in the demand for loanable funds will result in a __________ equilibrium interest rate as the quantity of loanable funds demanded __________ and the quantity of loanable funds supplied __________ as the market moves to a new equilibrium.
a. higher; increases; decreases
b. lower; decreases; decreases
c. higher; increases; increases
d. lower; increase; increases
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Related Book For
Money, Banking, Financial Markets and Institutions
ISBN: 978-0538748575
1st edition
Authors: Michael Brandl
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