When interest rates rise, the quantity of loanable funds demanded by

Name: When interest rates rise, the quantity of loanable funds demanded by
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When interest rates rise, the cost of borrowing increases, leading firms to decrease their demand for loans as they become more expensive. The government may still need to borrow, but they may be less likely to increase their borrowing when interest rates are high, so it is not a given that their demand for loanable funds will increase.

When Interest Rates Rise, the Quantity of Loanable Funds Demanded