As the demand for funds increase,the demand curve will shift to the ____ resulting in ____ market clearing interest rate.
A) right;higher
B) left;higher
C) right;lower
D) left;lower

Question

Quizplus · Accepted Answer

As the demand for funds increases, the demand curve shifts to the right, indicating a higher quantity of funds demanded at each interest rate. This leads to an increase in the market-clearing interest rate.

As the Demand for Funds Increase,the Demand Curve Will Shift