Decrease in the interest rate increase incee- 7. Read the scenario and indicate which curve in the loanable funds market will shift, which direction it will shift, and what will happen to the real interest rate, and the quantity of gross investment. Which Curve Direction Interest Rate Gross Investment Households begin to save more Businesses feel confident that the economy is going to greatly expand in the near future Consumers begin to feel worried about the economic future There is a decrease in household disposable income tical instability causes foreign investors pull money out of the economy A recession means businesses have a lot of physical capital going unused