Use the following to answer question :
Figure: Supply of Loanable Funds
-(Figure: Supply of Loanable Funds) Look at the figure Supply of Loanable Funds. When the interest rate rises from 6% to 8%, the:

Question

Use the following to answer question :
Figure: Supply of Loanable Funds 
-(Figure: Supply of Loanable Funds) Look at the figure Supply of Loanable Funds. When the interest rate rises from 6% to 8%, the:

Quizplus · Accepted Answer

When the interest rate increases, the quantity supplied of loanable funds typically rises because lenders are more willing to supply funds at higher interest rates, leading to an increase in the quantity supplied, not the overall supply curve.

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