Other things the same, when the interest rate rises
A) people would want to lend less, making the supply of loanable funds decrease.
B) people would want to lend less, making the quantity of loanable funds supplied decrease.
C) people would want to lend more, making the supply of loanable funds increase.
D) people would want to lend more, making the quantity of loanable funds supplied increase.
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Answer must be A ) people would want to lend less,making the supply of loanable funds decrease
When the interest rate rises, obviously the supply of money in the economy decreases
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