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In the loanable fund theory of interest rate, which of the following events would most likely cause the nominal interest rate to fall? a.The supply

In the loanable fund theory of interest rate, which of the following events wouldmostlikely cause the nominal interest rate to fall?

a.The supply of loanable funds decreases.

b.Both the supply of and the demand for loanable funds decrease.

c.The supply of loanable funds decreases and the demand for loanable funds increases.

d.The supply of loanable funds increases and the demand for loanable funds decreases.e.Both the supply of and the demand for loanable funds increase.

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