If the supply for loanable funds shifts to the left,then the equilibrium interest rate

Question

Quizplus · Accepted Answer

When the supply of loanable funds decreases, the equilibrium interest rate will increase (shift to the right) and the quantity of loanable funds will decrease (move down the demand curve). This is because there are fewer funds available for borrowing, so lenders can charge higher interest rates to borrowers. At the higher interest rate, fewer borrowers will be willing and able to borrow, which will reduce the quantity of loanable funds exchanged.

If the Supply for Loanable Funds Shifts to the Left,then