If the Desire for Present Consumption by Individuals and Households

If the desire for present consumption by individuals and households increases,the supply of loanable funds will

A) shift to the right, causing the interest rate to rise.
B) shift to the right, causing the interest rate to fall.
C) shift to the left, causing the interest rate to fall.
D) shift to the left, causing the interest rate to rise.
E) be unaffected, but the demand for loanable funds will fall.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free