When forecasting future interest rates, if the net demand for funds (ND) is _____, there will be an ______ adjustment in interest rates.
A) negative; upward
B) negative; downward
C) positive; upward
D) positive; downward

Question

Quizplus · Accepted Answer

When the net demand for funds is positive, there is an excess demand for loanable funds, which will lead to an upward adjustment in interest rates.

When Forecasting Future Interest Rates, If the Net Demand for Funds