Suppose the market for loanable funds is in equilibrium. If disposable income increases, the equilibrium real interest rate and the quantity of loanable funds .
A) falls; increases
B) rises; decreases
C) falls; decreases
D) rises; increases
Correct Answer:
Verified
Q163: Suppose that expected profit decreases. This change
Q164: Q165: In the market for loanable funds, if Q166: A decrease in disposable income shifts the Q167: Q169: If the government has a budget deficit Q170: An increase in disposable income shifts the Q171: When government saving is negative, 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
A) investment increases.
B)
