An increase in interest rates causes __________ the demand-for-loanable funds curve
A) a rightward shift in
B) a leftward shift in
C) a movement down along
D) a movement up along

Question

Quizplus · Accepted Answer

An increase in interest rates causes a movement up along the demand-for-loanable funds curve, as higher interest rates make borrowing more expensive, reducing the quantity of loanable funds demanded.

An Increase in Interest Rates Causes __________ the Demand-For-Loanable Funds