If there is a leftward shift in the supply curve for money, interest rates will

Question

Quizplus · Accepted Answer

A leftward shift in the supply curve for money means that there is a decrease in the supply of money. This would lead to an increase in the demand for money as borrowers try to secure more loans. As the demand for money exceeds the supply, lenders will increase interest rates in order to ration the limited supply of money. Therefore, interest rates will rise.

If There Is a Leftward Shift in the Supply Curve