A decrease in the demand for loanable funds, holding supply constant, will cause interest rates to:

Name: A decrease in the demand for loanable funds, holding supply constant, will cause interest rates to:
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A decrease in the demand for loanable funds indicates that borrowers are less willing to borrow money. This would cause a surplus of loanable funds, which would push down interest rates in order to encourage borrowers to take out loans. Therefore, interest rates would decrease.

A Decrease in the Demand for Loanable Funds, Holding Supply