Solved

Use the Following to Answer Questions

Question 106

Multiple Choice

Use the following to answer questions
Figure: Loanable Funds Contraction
Use the following to answer questions  Figure: Loanable Funds Contraction   -(Figure: Loanable Funds Contraction) In the accompanying figure,if the supply of loanable funds decreases from S<sub>LF </sub>to S<sup>1</sup><sub>LF</sub> and the demand for loanable funds remains at D<sub>LF</sub>,the equilibrium interest rate will: A)  increase to i<sub>1</sub>. B)  remain at i<sub>0</sub>. C)  fall to i<sub>2</sub>. D)  increase or decrease temporarily and then return to i<sub>0</sub>.
-(Figure: Loanable Funds Contraction) In the accompanying figure,if the supply of loanable funds decreases from SLF to S1LF and the demand for loanable funds remains at DLF,the equilibrium interest rate will:


A) increase to i1.
B) remain at i0.
C) fall to i2.
D) increase or decrease temporarily and then return to i0.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents