Using the market for loanable funds,which of the following has the potential to raise the real interest rate?

Question

Quizplus · Accepted Answer

An increase in the demand for loanable funds will shift the demand curve to the right, increasing the equilibrium interest rate. This is because there is now more demand for borrowing, which drives up the cost of borrowing (interest rate). B, C, and D do not necessarily have the potential to raise the real interest rate, as they all involve changes in the quantity demanded or supplied, rather than changes in the overall demand or supply curve.

Using the Market for Loanable Funds,which of the Following Has