As interest rates fall
A) there is a movement upward along the supply curve for loanable funds.
B) the supply curve for loanable funds shifts to the left.
C) there is a movement downward along the supply curve for loanable funds.
D) the supply curve for loanable funds shifts to the right.

Question

Quizplus · Accepted Answer

When interest rates fall, it becomes less attractive for lenders to provide loanable funds, leading to a decrease in the quantity supplied at each price. This is represented by a movement upward along the supply curve, not a shift of the curve itself.

As Interest Rates Fall