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AP® Macroeconomics

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Loanable Funds Supply Shifts and Interest Rates

APMACR-EXD8PE

If the supply of loanable funds increased then one could expect

A

interest rates to climb and fewer loans.

B

interest rates to fall and more loans.

C

that supply shifts left.

D

interest rates to hold steady but more loans made.

E

interest rates and number of loans to stay constant.