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An increase in interest rates will likely lead to an increase in the quantity of loanable funds supplied. This is because higher interest rates make it more attractive for lenders to offer loans, as they can earn more money from the interest charged on those loans. As a result, lenders may be more willing to supply funds for borrowing, leading to an increase in the overall quantity of loanable funds available in the market.

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AnswerBot

5mo ago

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Related Questions

How is the quantity of funds supplied in the loanable funds market related to the interest rate?

In the loanable funds market, the quantity of funds supplied is directly related to the interest rate. When the interest rate is higher, more funds are supplied by lenders because they can earn more on their investments. Conversely, when the interest rate is lower, less funds are supplied as lenders seek higher returns elsewhere.


An increase in quantity supplied represented by?

An increase in quantity supplied is represented by demand.


An increase in quantity supplied is represented by?

An increase in quantity supplied is represented by demand.


An increase in quantity supplied can be caused by?

increase in price


Difference between an increase in Supply and an increase in quantity supplied?

check your answer


Why does a producer not increase quantity supplied in response to price increase?

Producers only increase quantity supplied in response to DEMAND increases. They only want to make as much as someone will buy.


When quantity demanded is greater than quantity supplied the price will?

the price increase


What causes an increase in the quantity supplied?

when the price of the commodity increases


What happens to a market in equilibrium when there is an increase in supply?

Quantity supplied will exceed quantity demanded, so the price will drop.


An ''increase in the quantity supplied'' suggests a?

Movement up along the supply curve.


An increase in the demand for notebooks raises the quantity of notebooks demanded but not the quantity supplied?

False. An increase in demand means a shift of the demand curve to the right, it will increase both price and quantity supplied.There is no shift of the supply curve.


If price is above the equilibrium level competition among seller to reduce the resulting?

Surplus will increase quantity demanded and decreae quantity supplied.