(Answered) Suppose investors do not expect to make a rate of return on

Economics

Suppose investors do not expect to make a rate of return on an investment equal to the interest they would pay on the loan for the investment. Which of the following best describes the impact of this belief on demand for loanable funds and interest rate?

Loanable Funds / Interest Rate
Increase / Increase
Increase / Decrease
Increase / No Change
Decrease / Increase
Decrease / Decrease

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