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The Diagram Below Shows the Market for Loanable Funds for a Closed

Question 78

Multiple Choice

The diagram below shows the market for loanable funds for a closed economy. The diagram below shows the market for loanable funds for a closed economy. FIGURE 15- 3 -Refer to Figure 15- 3. Suppose the current equilibrium in the market for financial capital is at point D. Which of the following events is likely to move the equilibrium to point A? A) the introduction of a policy that encourages saving B) a technological improvement C) growth in average household income D) an increase in the interest rate E) a decrease in the interest rate FIGURE 15- 3
-Refer to Figure 15- 3. Suppose the current equilibrium in the market for financial capital is at point
D. Which of the following events is likely to move the equilibrium to point A?


A) the introduction of a policy that encourages saving
B) a technological improvement
C) growth in average household income
D) an increase in the interest rate
E) a decrease in the interest rate

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