Which of the following would not cause an increase in the demand for loanable funds?
A) An increase in business borrowing
B) An increase in consumer borrowing
C) An increase in the public debt
D) A decrease in interest rates

Question

Quizplus · Accepted Answer

A decrease in interest rates would not cause an increase in the demand for loanable funds; rather, it is a consequence of increased supply or decreased demand for loanable funds. Increases in business borrowing, consumer borrowing, and public debt all directly increase the demand for loanable funds.

Which of the Following Would Not Cause an Increase in the Demand