-If the original condition in the market for loans were shown by demand and supply curves D and S, an increase in government borrowing would cause the market equilibrium to move from:
A) point a to point b.
B) point a to point c.
C) point a to point d.
D) none of the above.

Question

-If the original condition in the market for loans were shown by demand and supply curves D and S, an increase in government borrowing would cause the market equilibrium to move from:
A) point a to point b. 
B) point a to point c. 
C) point a to point d. 
D) none of the above.

Quizplus · Accepted Answer

An increase in government borrowing would shift the demand curve for loans to the right, causing the market equilibrium to move from point a to point b.

-If the Original Condition in the Market for Loans Were