Assuming all else equal,the credit supply curve shows the relationship between the quantity of credit supplied and the ________.

Question

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The credit supply curve shows the quantity of credit that lenders are willing to supply at different real interest rates. All else being equal, as the real interest rate increases, lenders are willing to supply more credit, resulting in a rightward shift of the credit supply curve. Alternatively, as the real interest rate decreases, lenders are willing to supply less credit, resulting in a leftward shift of the credit supply curve. The other options (inflation rate, real wage rate, and income tax rate) are not directly related to the credit supply curve.

Assuming All Else Equal,the Credit Supply Curve Shows the Relationship