A change in the interest rate resulting from a change in the supply of loanable funds is called the expectations effect.

Name: A change in the interest rate resulting from a change in the supply of loanable funds is called the expectations effect.
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The change in interest rate resulting from a change in the supply of loanable funds is called the supply effect. The expectations effect refers to changes in interest rates caused by changes in expected future inflation rates.

A Change in the Interest Rate Resulting from a Change