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If there is shortage of loanable funds, what is most likely to happen? a. Neither curve shifts, but the quantity of lcanahle funds supplied decreases and the quantity demanded increases as the interest rate falls to equilibrium. '1 Neither curve shifts, but the quantity of loanable funds supplied increases and the quantity demanded decreases as the interest rate rises to equilibrium. 0. The supply for loanable Jnds shifts left and the demand shifts right. (1- The supply for loanable Jnds shifts right and the demand shifts left