If the government increases borrowing at the same time that savers and lenders decrease the supply of

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If the government increases borrowing at the same time that savers and lenders decrease the supply of loans,

a. The interest rate will increase and the quantity of loans made will decrease. 

b. The interest rate will increase but the impact on the quantity of loans made is unknown.

c. The interest rate will decrease and the quantity of loans made will decrease.

d. The interest rate will decrease and the quantity of loans made will increase.

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