Other things being equal, which of the following can cause interest rates to fall in credit markets?

Other things being equal, which of the following can cause interest rates to fall in credit markets?



A. An increase in the federal government's demand for credit
B. A decrease in supply of loanable funds resulting from a decline in private saving
C. A decrease in the federal government's demand for credit
D. An increase in private demand for credit to finance new investments





Answer: C