-The loan market condition illustrated by the movement from S1 to S2 in Figure C would be the immediate result of an increase in the:

Question

Quizplus · Accepted Answer

The movement from S1 to S2 in a loan market diagram typically represents an increase in the supply of loans. This can be directly caused by the Federal Reserve's purchase of securities on the open market, which injects money into the banking system, allowing banks to increase their lending activities.

-The Loan Market Condition Illustrated by the Movement from S1