The equilibrium rate of interest as determined in the loanable funds theory of i
ID: 1191117 • Letter: T
Question
The equilibrium rate of interest as determined in the loanable funds theory of interest will fall if:
The supply of loanable funds increases with the demand curve unchanged
The supply of loanable funds is unchanged but demand increases
The demand for loanable funds is unchanged while the supply decreases
None of the above
The supply of loanable funds increases with the demand curve unchanged
The supply of loanable funds is unchanged but demand increases
The demand for loanable funds is unchanged while the supply decreases
None of the above
Explanation / Answer
The supply of loanable funds increases with the demand curve unchanged