When the utility derived from an asset purchased with borrowed funds decreases The demand of funds curve will move to the left and the equilibrium interest rate will decrease. The demand of funds curve will move to the right and the equilibrium interest rate will increase. The supply of funds curve will move to the left and the equilibrium interest rate will increase. The supply of fund curve will move to the right and the equilibrium interest rate will increase.

When the utility derived from an asset purchased with borrowed funds decreases The demand of funds curve will move to the left and the equilibrium interest rate will decrease. The demand of funds curve will move to the right and the equilibrium interest rate will increase. The supply of funds curve will move to the left and the equilibrium interest rate will increase. The supply of fund curve will move to the right and the equilibrium interest rate will increase