
-In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF0. What happens if real wealth decreases?
A) The supply of loanable funds curve would shift rightward to a curve such as SLF2.
B) The supply of loanable funds curve would shift leftward to a curve such as SLF1.
C) There would be a movement to a point such as b on supply of loanable funds curve SLF0.
D) Nothing; the economy would remain at point a.
Correct Answer:
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Q146: Q147: In the market for loanable funds, an Q148: An increase in the real interest rate Q149: If households believe they will experience higher Q150: Q152: If the real interest rate is below Q153: A decrease in disposable income _. Q154: An increase in the real interest rate Q155: Which of the following is true? Q156: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
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A) has
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