Suppose the Interest Rate Increases

question 89

Multiple Choice

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

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

---

Definitions:

Neurotransmission

The process by which nerve cells communicate with each other or with muscles, involving the release and reception of chemicals called neurotransmitters.

Frontal Lobe

Located at the front of each cerebral hemisphere, this brain area oversees voluntary muscle activities, verbal expression, and higher-order executive processes.

Myelin

A fatty substance that coats and insulates nerve fibers, improving the speed and efficiency of nerve signal transmission.

Social Relationships

connections between individuals or groups that may be based on interactions, emotional ties, or social networks.