As a result of the recession in 2008, the default risk increased. How did this change affect the loanable funds market?
A) There was a movement up along the supply of loanable funds curve.
B) There was a leftward shift in the supply of loanable funds curve.
C) There was a movement down along the demand for loanable funds curve.
D) There was a rightward shift in the supply of loanable funds curve.
Correct Answer:
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Q123: Q124: An increase in the real interest rate Q125: If households believe their incomes will fall Q126: Which of the following is TRUE? Q127: Which of the following will shift the Q129: An increase in the real interest rate
I. As
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