When government becomes a lender in the loanable funds market:

• (i) The supply of funds increases, and the interest rate decreases.
• (ii) The supply of funds increases, and the interest rate increases.
• (iii) The supply of funds decreases, and the interest rate decreases.
• (iv) The supply of funds decreases, and the interest rate increases.

Group of answer choices

(i) and (ii) are correct.

(ii) and (iv) are correct.

only (iii) is correct.

only (i) is correct.