A decrease in the supply of loanable funds will __________ interest rates and __________ quantity demanded of loanable funds.Select the correct answer below:

Explain how the following will affect• the investment decision,• the demand for loanable funds and• the interest rate in the loanable funds market.In your answer refer to the figure provided as appropriate and identify the correct change inthe investment and the interest rate. (Start from point A in Figure 3).Figure 3 Loanable funds marketDuring the test, you will be asked this question with a different example.ExampleThe depreciation rate in the economy increases.*********************************************************************************************************

Which of the following will cause an increase in the interest rate?Multiple select question.A decrease in the demand for money.An increase in the supply of money.An increase in the demand for money.A decrease in the supply of money.

Multiple Choice QuestionWhich of the following explains the interest rate in terms of the supply of and demand for funds available for lending and borrowing?Multiple choice question.The supply and demand for moneyThe loanable funds theory of principalThe loanable funds theory of incomeThe loanable funds theory of interest

Which of the following would likely increase the supply of financial capital in the loanable funds market?Question 2Answera.An increase in interest rates.b.A decrease in government borrowing.c.A decrease in private savings.d.An increase in consumer spending.

All other things being equal, a decrease in the demand for loanable funds:Group of answer choicesmight not have any effect on the interest rate.results from an increase in business circumstances and a decrease in the level of savings.drives the interest rate down.drives the interest rate up.