Scenario 32-4

In 2011 Greek citizens were concerned about the size of government debt. Fearful that the government might be unable to fulfill its promise to insure depositors in Greek banks against losses created by bank failures, depositors moved funds out of Greek banks.
-Refer to Scenario 32-4. Which curve in the domestic loanable funds market shifted and which direction did it shift?

Question

Scenario 32-4
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In 2011 Greek citizens were concerned about the size of government debt. Fearful that the government might be unable to fulfill its promise to insure depositors in Greek banks against losses created by bank failures, depositors moved funds out of Greek banks.
-Refer to Scenario 32-4. Which curve in the domestic loanable funds market shifted and which direction did it shift?

Quizplus · Accepted Answer

The Answer of Scenario 32-4
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In 2011 Greek citizens were concerned about the size of government debt. Fearful that the government might be unable to fulfill its promise to insure depositors in Greek banks against losses created by bank failures, depositors moved funds out of Greek banks.
-Refer to Scenario 32-4. Which curve in the domestic loanable funds market shifted and which direction did it shift?

Scenario 32-4 ​

Scenario 32-4