(Figure: Market for Loanable Funds 2) Based on the graph, if households decide to save a larger portion of their income because they fear job loss due to a recession, the loanable funds supply curve will shift from _____ to _____, and the new equilibrium will be at point _____, holding demand constant at D₀. A) S₀; S₁; a B) S₀; S₁; b C) S₁; S₀; b D) S₁; S₀; d

Question

Quizplus · Accepted Answer

The Answer of (Figure: Market for Loanable Funds 2) Based on the graph, if households decide to save a larger portion of their income because they fear job loss due to a recession, the loanable funds supply curve will shift from _____ to _____, and the new equilibrium will be at point _____, holding demand constant at D₀. A) S₀; S₁; a B) S₀; S₁; b C) S₁; S₀; b D) S₁; S₀; d

(Figure: Market for Loanable Funds 2) Based on the Graph