Use the Following to Answer Questions

question 6

Multiple Choice

Use the following to answer questions:
-(Figure: Loanable Funds) Use Figure: Loanable Funds. Which scenario might produce a new equilibrium interest rate of 8% and a new equilibrium quantity of loanable funds of $150 billion?

• A) Consumption as a fraction of disposable income increases.
• B) Businesses become more optimistic about the return on investment spending.
• C) The federal government has a budget surplus, rather than a budget deficit.
• D) There is an increase in capital inflows from other nations.

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