how-does-a-decrease-in-interest-rates-affect-the-demand-for-loanable-funds

Question

How does a decrease in interest rates affect the demand for loanable funds?

Accepted Answer

It increases the demand as borrowing becomes cheaper.

Answer

It decreases the demand as borrowing becomes more expensive.

Answer

It has no effect on the demand for loanable funds.

Answer

It increases the supply of loanable funds.