-In the Above Figure, the Initial Supply of Loanable Funds

question 12

Multiple Choice

-In the above figure, the initial supply of loanable funds curve is SLF0 and the initial demand for loanable funds curve is DLF0. An economic expansion that raises disposable income and the expected profit would

• A)have no effect on either the demand for loanable funds curve or the supply of loanable funds curve.
• B)shift the supply of loanable funds curve rightward to a curve such as SLF1, and shift the demand for loanable funds curve rightward to a curve such as DLF1.
• C)only shift the demand for loanable funds curve rightward to a curve such as DLF1.
• D)only shift the supply of loanable funds curve rightward to a curve such as SLF1.

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Definitions:

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