If There Is Surplus of Loanable Funds, What Is Most

question 186

Multiple Choice

If there is surplus of loanable funds, what is most likely to happen?

• A) The supply for loanable funds shifts right and the demand shifts left.
• B) The supply for loanable funds shifts left and the demand shifts right.
• C) Neither curve shifts, but the quantity of loanable funds supplied increases and the quantity demanded decreases as the interest rate rises to equilibrium.
• D) Neither curve shifts, but the quantity of loanable funds supplied decreases and the quantity demanded increases as the interest rate falls to equilibrium.

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