Holding demand constant, an increase in the supply of loanable funds will result in a (n) ___________ in interest rates.

Name: Holding demand constant, an increase in the supply of loanable funds will result in a (n) ___________ in interest rates.
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Question

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According to the law of supply and demand, an increase in supply will lead to a decrease in price (or interest rates in this case) if demand remains constant. Therefore, an increase in the supply of loanable funds will result in a decrease in interest rates.

Holding Demand Constant, an Increase in the Supply of Loanable