Answer the given four questions related to the market for loanable funds. what effect will an increase in interest rates have on the quantity of loanable funds supplied? quantity supplied will increase. some lenders will offer more whereas others offer less. quantity supplied will decrease. there will be no change in quantity supplied. as interest rate decreases, what happens to the quantity of loanable funds demanded? quantity demanded will increase. there will be no change in quantity demanded. quantity demanded will decrease. some borrowers will demand more funds whereas others will demand less. which of the terms acts as the "price" in the market for loanable funds? interest rate demand supply capital if the projected rate of return for a project is less than the interest rate for a loan that is necessary to complete the project, how will the borrowing business act? the business will not take out the loan. the business will proceed anyway, knowing that the return is only an estimate. the business will take out the loan. the business will demand more funds to cover the shortfall.