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VLD [36.1K]
2 years ago
12

When the supply of loanable funds shifts its position to the left, interest rates will ________ because loanable funds will be _

_______.
Social Studies
1 answer:
Leni [432]2 years ago
4 0

When the supply of loanable funds shifts its position to the left, interest rates will rise because loanable funds will be more scarce.

Keeping demand constant, a shift to the left in the supply of loanable funds raises interest rates while decreasing the total quantity of loanable funds available.

The demand curve for loanable funds is sloping downward, indicating that when interest rates are low, borrowers will demand more funds for investment. The supply curve for loanable funds is upward sloping, indicating that lenders are willing to lend more funds to investors at higher interest rates.

Deficits reduce the supply of loanable funds; surpluses increase the supply of loanable funds; and surpluses shift the supply of loanable funds.

To learn more about supply of loanable funds visit brainly.com/question/15851247?referrer=searchResults

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