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The Figure Above Shows the Market for Loanable Funds

Question 159

Multiple Choice

   The figure above shows the market for loanable funds.The supply of loanable funds curve shifts rightward. -The change illustrated in the figure above is part of the transmission process of the Fed's monetary policy.As a result of the increase in the supply of loanable funds, in the short run aggregate demand ________, aggregate supply ________, and potential GDP ________. A)  increases; decreases; decreases B)  increases; increases; increases C)  decreases; decreases; decreases D)  increases; does not change; does not change E)  decreases; increases; increases
The figure above shows the market for loanable funds.The supply of loanable funds curve shifts rightward.
-The change illustrated in the figure above is part of the transmission process of the Fed's monetary policy.As a result of the increase in the supply of loanable funds, in the short run aggregate demand ________, aggregate supply ________, and potential GDP ________.


A) increases; decreases; decreases
B) increases; increases; increases
C) decreases; decreases; decreases
D) increases; does not change; does not change
E) decreases; increases; increases

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