An increase in the interest rate leads to a decrease in the quantity demanded to borrow.

Name: An increase in the interest rate leads to a decrease in the quantity demanded to borrow.
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Question

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When the interest rate increases, the cost of borrowing money increases, leading to a decrease in the quantity demanded to borrow. This is due to the fact that borrowers will have to pay more to borrow money, making it a less attractive option.

An Increase in the Interest Rate Leads to a Decrease