Question by : Suppose households lose confidence in the economy so consumer spending decreases.?
Which of the following best describes the impact of this belief on supply of loanable funds and interest rates?

Loanable Funds / Interest Rate

Increase / Increase

Increase / Decrease

No change / Increase

Decrease / Increase

Decrease / Decrease

Best answer:

Answer by ROBERT
I would pick Increase / Decrease due to the law of supply and demand. In today’s world then I would pick Decrease / Decrease.

What do you think? Answer below!

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