Interest rates will decline when the demand for loanable funds
A) shifts to the left.
B) shifts to the right.
C) anticipates reduced growth in the economy.
D) "a" and "c" above.

Question

Quizplus · Accepted Answer

Interest rates decline when the demand for loanable funds shifts to the left, indicating less borrowing, and when there is anticipation of reduced economic growth, leading to lower demand for funds.

Interest Rates Will Decline When the Demand for Loanable Funds