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Sagot :
If both the supply and the demand of loanable funds shift to the right, then (c) the actual interest rate is deterministic but the maximum level of loanable funds advances. IS THE CORRECT Response
What causes the rightward movement in the quantity of loanable funds?
The availability of loanable cash rises as households become more frugal, that is, as households decide to save more. The production schedule for loanable funds in Figure is shifted down and to the right as a result of the increase in supply, ceteris paribus, which lowers the optimum interest rate
.What will occur if the market forces for loanable funds transform?
The necessity for loanable funds has changed. As a result, there will be a greater demand for loanable funds, which raises the current interest rate. In other words, when the industry is performing well, we would anticipate seeing an increase in real interest rates and the number of funding provided.
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