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


14. If the supply for loanable funds shifts to the left, then the equilibrium interest rate a. and quantity of loanable funds

Answer

D. Rises and the quantity of loanable funds falls.

Answer- When the supply of loanable funds shifts to the left, it means there is a fall in the supply. Given the demand for loanable funds, there is excess demand for the loanable funds in the market. This leads to rise in intereat rate and fall in the quantity of loanable funds.

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