Changes in All of the Following Shift the Supply Curve

question 70

Multiple Choice

Changes in all of the following shift the supply curve of loanable funds except

• A)disposable income.
• B)the real interest rate.
• C)wealth.
• D)default risk.
• E)expected future income.

---

Definitions:

Differential Cost

The variance in expenses resulting from choosing between two options or adjustments in production amounts.

Operating Capacity

The maximum output or production level a company can sustain with its current resources, such as machinery and labor, over a specific period.

Unused Capacity

Resources or production potential that remains unutilized or is not being used to its full extent.

Opportunity Cost

The cost of the next best alternative that is foregone when a decision is made to choose one option over others.