6. If there is a shortage in the market for loanable funds, what happens? (A) The supply for loanable funds shifts right and demand shifts left. (B) Neither curve shifts. The quantity of loanable funds supplied decreases and the quantity demanded rises as the interest rate falls to equilibrium. (C) The supply of loanable funds shifts left and demand shifts right. (D) Neither curve shifts. The quantity of loanable funds supplied increases and the quantity demanded decreases as the interest rate rises to equilibrium.

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