Imagine in a particular country several major financial institutions fail within a relatively short timeframe, and the country's leader announces a massive federal government bailout is needed to avoid an economic collapse. During this period, uncertainty on the part of business leaders and consumers would be reasonably expected to increase for a while. What impact could this increase in uncertainty have on interest rates as described in the instructor's presentation? Interest rates would decrease because the demand for loanable funds would decrease and the supply of loanable funds would increase. There would be no change in the level of interest rates because the change in the demand forloanable funds would be offset by the change in the supply of loanable funds. If the decrease in the demand for loanable funds was less than the decrease in the supply of loanable funds, then interest rates would increase. Interest rates would increase because the demand for loanable funds would increase and the supply of loanable funds would decrease