In the market for loanable funds, there are indications of a forthcoming recession with concurrent reductions in job security and a lower demand for products. What changes should be expected in the market for loanable funds due to these events?

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In a recession, with lower job security and demand, people and businesses are less inclined to borrow, reducing the demand for loanable funds. This decrease in demand typically leads to lower interest rates, although the exact change in the amount of borrowed funds can be uncertain due to various factors such as government intervention or changes in savings rates.

In the Market for Loanable Funds, There Are Indications of a Forthcoming