Everything else remaining unchanged,what is likely to happen to the equilibrium real interest rate and quantity of credit if the credit demand curve shifts to the left?

Question

Quizplus · Accepted Answer

When the credit demand curve shifts to the left, it indicates a decrease in the demand for credit at any given interest rate. This shift will lead to a lower equilibrium interest rate because lenders have to offer credit at a lower rate to attract borrowers. Additionally, the quantity of credit in the market will also decrease because there is less demand for borrowing.

Everything Else Remaining Unchanged,what Is Likely to Happen to the Equilibrium