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

Question

Quizplus · Accepted Answer

When the supply of loanable funds decreases, the cost of loanable funds will increase due to the increased demand for the limited supply. As a result, borrowers will be less likely to seek out loans and lenders will be less willing to lend, which will lead to a decrease in the quantity of loanable funds exchanged.

If the Supply of Loanable Funds Decreases,ceteris Paribus,the Quantity of Loanable