Suppose the Interest Rate Increases

question 31

Multiple Choice

Suppose the interest rate increases.Other things constant, how will the loanable funds market be affected?  

• A) The supply of loanable funds curve will shift to the left. 
• B) The supply of loanable funds curve will shift to the right. 
• C) The quantity of loanable funds supplied will increase. 
• D) The quantity of loanable funds demanded will increase.

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Definitions:

Test Statistic

A numerical value obtained from a statistical test used to decide whether to reject the null hypothesis.

Zero

A numerical value representing the absence of any quantity or magnitude.

Normal Distribution

A symmetric probability distribution centered around the mean, indicating that events close to the mean occur more often than those at a distance.