Use the following to answer question 93:
-(Figure: Supply of Loanable Funds) Use Figure: Supply of Loanable Funds. When the interest rate rises from 6% to 8%, the:

Question

Use the following to answer question 93: 
-(Figure: Supply of Loanable Funds) Use Figure: Supply of Loanable Funds. When the interest rate rises from 6% to 8%, the:

Quizplus · Accepted Answer

An increase in the interest rate from 6% to 8% would lead to an increase in the quantity supplied of loanable funds, not a shift in the supply curve itself. This is because suppliers are more willing to lend as they receive a higher return on their loans, hence the quantity supplied increases.

Use the Following to Answer Question 93