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- Other things equal, an increase
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Card 74 / 100: Other things equal, an increase in interest rates will have what effect on the quantity demanded of loans?
Answer:
People will demand fewer loans or loans of a smaller amount.
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Dr.Robert MurphyAssociated Scholar
Mises Institute
USA
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Attribution:
Dr. Robert P. Murphy, Lessons for the Young Economist. (Mises Institute), http://mises.org/document/6215/Lessons-for-the-Young-Economist (Accessed 04 April, 2014). License: Creative Commons BY
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