What changes will a shortage of loanable funds induce in a Savings-Investment diagram in a closed economy?
A) The demand for loanable funds curve will shift right, so the interest rate will rise.
B) The supply of loanable funds curve will shift left, so the interest rate will fall.
C) There will be no shifts of the curves, but the interest rate will rise.
D) There will be no shifts of the curves, but the interest rate will rise
Correct Answer:
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Q28: Figure 32-1 Q29: Figure 32-1 Q30: Figure 32-1 Q32: If the world real interest rate is Q33: Which of the following is consistent with Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents