First, watch this vidoe: https://www.youtube.com/watch?v=L-GouzQaAno

As you may have heard on the news this past week, inflation spiked over the past couple of years (as measured by the CPI). The Federal Reserve began raising interest rates in presponse.

https://www.barrons.com/articles/cpi-inflation-report-july-2022-data-51660078098

What happens in the market for loanable funds (the market for the money people borrow to start businesses, buy cars, etc.) if interest rates rise? Think in terms of both supply and demand.