The law of supply states that, ceteris paribus, if the price of loans (known as "interest rate") rises then the quantity supplied of loans will increase.

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The law of supply indicates that, all else being equal, an increase in price leads to an increase in the quantity supplied. In the context of loans, a higher interest rate makes lending more profitable, encouraging lenders to supply more loans.

The Law of Supply States That, Ceteris Paribus, If the Price