Which of the following would necessarily raise the interest rate?

Question

Quizplus · Accepted Answer

When the demand for loanable funds shifts right, borrowers are willing to pay higher interest rates to obtain funds, which raises the interest rate. When the supply of loanable funds shifts left, lenders are demanding higher interest rates to invest their funds, which also raises the interest rate. Therefore, the combination of the two shifts in opposite directions, results in a necessary increase in the interest rate.

Which of the Following Would Necessarily Raise the Interest Rate