A binding interest rate ceiling will lead to a(n)

Question

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A binding interest rate ceiling will lead to a decrease in the quantity supplied of saving because savers will receive lower returns on their funds. This will result in less willingness to save. At the same time, borrowers will be more willing to demand loans because they can get them at a lower cost. This will lead to an increase in the quantity demanded for borrowing. Ultimately, the result will be a shortage of saving because the quantity demanded of loans will exceed the quantity of saving supplied at the restricted interest rate, creating an imbalance in the market.

A Binding Interest Rate Ceiling Will Lead to A(n)