-In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF?. What happens if disposable income decreases?

Name: -In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF?. What happens if disposable income decreases?
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Question

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When disposable income decreases, households have less income to save, leading to a decrease in the supply of loanable funds. This is represented by a leftward shift of the supply of loanable funds curve.

-In the Above Figure, the Economy Is at Point a on the Initial