As interest rates rise
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

Interest rates rising cause a movement upward along the supply curve for loanable funds, as higher interest rates make it more attractive for lenders to supply funds.

As Interest Rates Rise