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

Question

Quizplus · Accepted Answer

When the credit supply curve shifts to the left, it means that there is a decrease in the supply of credit at any given interest rate. This will lead to an increase in the equilibrium interest rate and a decrease in the equilibrium quantity of credit. Therefore, the correct answer is C - the equilibrium rate of interest will increase, and the equilibrium quantity of credit will decrease.

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