A Decrease in Disposable Income _

question 92

Multiple Choice

A decrease in disposable income _.

• A) has no effect on the supply of loanable funds curve
• B) results in movement up the supply of loanable funds curve
• C) shifts the supply of loanable funds curve rightward
• D) shifts the supply of loanable funds curve leftward

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Definitions:

Banker's Lobbying

The efforts made by banks and financial institutions to influence lawmakers and regulators in favor of policies beneficial to their interests.

Subprime Mortgage

Mortgage for a borrower with a not-so-good credit rating.

Credit Rating

An assessment of the creditworthiness of a borrower in general terms or with respect to a particular debt or financial obligation.

Prime Rate

The interest rate that commercial banks charge their most creditworthy customers, typically used as a benchmark for many other loans and credit products.