Which of the following would shift the supply curve for loans to the right,reducing short-term interest rates?
A) An increase in the amount of money the Fed makes available to banks.
B) An increase in margin requirements.
C) A reduction in discount lending by the Fed to banks.
D) An increase in the desire of consumers to borrow money.

Question

Quizplus · Accepted Answer

An increase in the amount of money available to banks will increase the supply of loanable funds, lowering interest rates in the short run.

Which of the Following Would Shift the Supply Curve for Loans