What are the macroeconomic implications of a decrease in the supply of loanable funds for investment and economic growth?

• A. It leads to lower interest rates, encouraging investment and promoting economic growth.
• B. It leads to higher interest rates, reducing investment and slowing economic growth.
• C. It leads to lower interest rates, reducing investment and slowing economic growth.
• D. It has no significant impact on interest rates, investment, or economic growth.

Answer: (B)