Question

If aggregate demand decreases does the demand for loanable funds decrease also?

Answer 1

As the interest rate on loanable funds increases, it becomes more expensive to borrow and the quantity of funds demanded will decrease. On the other hand, as the interest rate for loanable funds increase, the supply of loanable funds also increases because higher interests rates makes saving more financially attractive.

Answer 2

So an decrease in AD will cause interest rates to go down which means the opp of this ^^^is true. So Demand for loan able funds will increase if AD decreases (lower interest rate to pay back the bank, etc).