Refer to the figure below to answer the following questions.
Figure 23.2.5
-Refer to Figure 23.2.5.In Figure 23.2.5,the supply of loanable funds curve is SLF0 and the demand for loanable funds curve is DLF0.An expansion that increases disposable income and expected profit
A) shifts the supply of loanable funds curve rightward to curve SLF1 and does not shift the demand for loanable funds curve.
B) shifts the supply of loanable funds curve rightward to curve SLF1, and shifts the demand for loanable funds curve rightward to curve DLF1.
C) shifts the demand for loanable funds curve rightward to curve DLF1 and does not shift the supply of loanable funds curve.
D) has no effect on either the demand for loanable funds curve or the supply of loanable funds curve.
E) none of the above.
Correct Answer:
Verified
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