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-In the Above Figure, the Economy Is at Point a on the Initial

Question 156

Multiple Choice

  -In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF<sub>0</sub>. What happens if the interest rate rises? A)  The supply of loanable funds curve shifts leftward to a curve such as SLF<sub>1</sub>. B)  The supply of loanable funds curve shifts rightward to a curve such as SLF<sub>2</sub>. C)  There is a movement to a point such as b on supply of loanable funds curve SLF<sub>0</sub>. D)  none of the above
-In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF0. What happens if the interest rate rises?


A) The supply of loanable funds curve shifts leftward to a curve such as SLF1.
B) The supply of loanable funds curve shifts rightward to a curve such as SLF2.
C) There is a movement to a point such as b on supply of loanable funds curve SLF0.
D) none of the above

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