There will be pressure on the interest rate for loanable funds to increase when

Name: There will be pressure on the interest rate for loanable funds to increase when
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Question

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When the quantity demanded exceeds the quantity supplied, it indicates that more people want to borrow money than there is available. This excess demand puts upward pressure on interest rates as lenders can charge more due to the higher competition for available funds.

There Will Be Pressure on the Interest Rate for Loanable