Consumers become more impatient, attaching less value to future consumption, all

Question

Consumers become more impatient, attaching less value to future consumption, all else equal. The equilibrium interest rate would____ and the equilibrium quantity of loanable funds would ______

a. increase; increase

b. decrease; increase

c. increase; decrease

d. decrease; decrease

Please not only give an answer but the intuition behind this.

My logic here is that demand for loanable funds is increasing as consumers place more value in immediate consumption or immediate access to borrowed money more so than saving or future consumption. Wouldnt this result in a rightward shift of the demand curve, increasing the equilibrium interest rate and increasing the quantity of loanable funds?

Explanation / Answer

b. decrease; increase

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