If the demand for loanable funds decreases,ceteris paribus,the quantity of loanable funds exchanged will:

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If the demand for loanable funds decreases, ceteris paribus, lenders will reduce the interest rates they offer to induce borrowers to take out loans. This, in turn, will decrease the quantity of loanable funds exchanged, as savers and investors will be less willing to supply their money at lower interest rates. Therefore, a decrease in demand for loanable funds will lead to a decrease in the quantity of loanable funds exchanged.

If the Demand for Loanable Funds Decreases,ceteris Paribus,the Quantity of Loanable