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Question
Suppose that the initial supply of loanable funds curve is SLF1. In the figure above, an increase in the real interest rate leads to
i. a shift in the supply of loanable funds curve from SLF1 to SLF2.
ii. a shift in the supply of loanable funds curve from SLF1 to SLF3.
iii. a movement along the supply of loanable funds curve SLF1.
iv. no change whatever.
A) i only
B) ii only
C) iii only
D) i and iii
E) iv only
Answer
This answer is hidden. It contains 1 characters.
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