The demand for loanable funds decreases while the supply simultaneously increases.This would cause:
A) the equilibrium quantity of loanable funds to decrease and the equilibrium interest rate to increase.
B) the equilibrium quantity of loanable funds to increase and the equilibrium interest rate to decrease.
C) the equilibrium quantity of loanable funds to increase, but the effect on the equilibrium interest rate would be uncertain.
D) the equilibrium interest rate to increase, but the new equilibrium quantity would be uncertain.
E) the equilibrium interest rate to decrease, but the new equilibrium quantity would be uncertain.
Correct Answer:
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