When forecasting future interest rates, if the net demand for funds (nd) is Positive, there will be an Upward adjustment in interest rates.
As a result, there will be greater demand for loanable funds, which raises the actual interest rate.
Interest rates and the amount of money in circulation are inversely related. A bigger money supply results in lower market interest rates, which reduces the cost of borrowing for consumers. In contrast, a lower money supply typically results in an increase in market interest rates, making loans for consumers more expensive.
When forecasting future interest rates, if the net demand for funds (nd) is Positive, there will be an Upward adjustment in interest rates.
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