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10 June, 03:47

If the demand for loanable funds shifts to the right, then the equilibrium interest rate a. and quantity of loanable funds rises. b. and quantity of loanable funds falls. c. falls and the quantity of loanable funds rises. d. rises and the quantity of loanable funds falls.

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  1. 10 June, 04:57
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    If the demand for loanable funds shifts to the right, then the equilibrium interest rate and quantity of loanable funds rise.

    Option: A

    Explanation:

    The availability of loanable funds is savings dependent. Lending is dependent on desire for loanable funds. The relationship between the savings supply and loan requirement decides the real interest rate and the amount is being loaned out.

    The requirement for loanable funds reflects lenders' actions, as well as the amount of loans requested. The smaller the rate of interest, the less costly it is to lend. The balance of loanable funds on the market is done because the amount of loans lenders want is the same as the amount of savings that savers have. The interest rate varies to ensure that both are equivalent.
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Home » Business » If the demand for loanable funds shifts to the right, then the equilibrium interest rate a. and quantity of loanable funds rises. b. and quantity of loanable funds falls. c. falls and the quantity of loanable funds rises. d.
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