Suppose That the Initial Supply of Loanable Funds Curve Is

question 25

Multiple Choice

Suppose that the initial supply of loanable funds curve is SLF1. In the figure above, an increase in the real interest rate leads to
I. a shift in the supply of loanable funds curve from SLF1 to SLF2.
Ii. a shift in the supply of loanable funds curve from SLF1 to SLF3.
iii. a movement along the supply of loanable funds curve SLF1.
Iv. no change whatever.

• A)i and iii
• B)ii only
• C)iii only
• D)i only
• E)iv only

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