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Nata [24]
3 years ago
5

Which of the following could explain an increase in the interest rate and the equilibrium quantity of loanable funds? Group of a

nswer choices The demand for loanable funds shifted rightward. The demand for loanable funds shifted leftward. The supply of loanable funds shifted rightward. The supply of loanable funds shifted leftward.
Business
1 answer:
taurus [48]3 years ago
3 0

Answer:

The demand for loanable funds shifted rightward.

Explanation:

The loanable funds refers to the funds that are available for the borrowers to take the loan from the lender.

Here, the supply of loanable funds remains unchanged as consumers are saving certain funds to act as the lender. If there is a rightward shift in the demand curve for loanable funds which indicates that there is an increase in the demand for loanable funds. We know that interest rate is shown on the y axis and the quantity of loanable funds is shown on the x-axis.

Due to this rightward shift in the demand curve for loanable funds, there is an increase in an equilibrium interest rate and in the equilibrium quantity.

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Answer:

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