An increase in the supply for loanable funds, holding demand constant, will cause interest rates to:

Name: An increase in the supply for loanable funds, holding demand constant, will cause interest rates to:
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An increase in the supply for loanable funds, holding demand constant, means there are more funds available to lend than there are borrowers to borrow. This creates a surplus, and lenders will lower interest rates to entice borrowers to take out loans. Therefore, interest rates will decrease.

An Increase in the Supply for Loanable Funds, Holding Demand