The equilibrium rate of interest as determined in the loanable funds theory of i

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

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