Holding demand constant, a decrease in the supply of loanable funds will result in a (n) ___________ in interest rates.

Name: Holding demand constant, a decrease in the supply of loanable funds will result in a (n) ___________ in interest rates.
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Question

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When the supply of loanable funds decreases, the demand for those funds remains constant, creating a shortage in the market. This shortage leads to increased competition among borrowers, causing interest rates to increase.

Holding Demand Constant, a Decrease in the Supply of Loanable