As a result of a recession,the default risk increases.How does this change affect the loanable funds market?
A) There is a movement up along the supply of loanable funds curve.
B) There is a leftward shift of the supply of loanable funds curve.
C) There is a movement down along the demand for loanable funds curve.
D) There is a rightward shift of the supply of loanable funds curve.
E) There is a movement up along the demand for loanable funds curve.
Correct Answer:
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