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Suppose that new economy firms like Airbnb and Uber continue to cause a reduction in construction of hotels and automobiles. Based on the supply and
Suppose that "new economy" firms like Airbnb and Uber continue to cause a reduction in construction of hotels and automobiles. Based on the supply and demand for loanable funds, which of the following characterizes the change in supply/demand for loanable funds and the expected change in interest rates?
A. Increase in demand for funds, interest rates increase
B. Decrease in demand for funds, interest rates decrease
C. Increase in supply of funds, interest rates decrease
D. Decrease in supply of funds, interest rates increase
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