If the Supply of Loanable Funds Curve Shifts Right,then the Equilibrium

question 107

Multiple Choice

If the supply of loanable funds curve shifts right,then the equilibrium

• A)interest rate and level of net capital outflows rise.
• B)interest rate rises and the equilibrium level of net capital outflow falls.
• C)interest rate falls and the equilibrium level of net capital outflow rises.
• D)interest rate and level of net capital outflows fall.

---

Definitions:

Trade-In Allowance

The amount credited to a buyer for trading in an old item towards the purchase of a new item, reducing the price of the new purchase.

Land Improvements

Enhancements to a plot of land such as landscaping, lighting, and paving, that are intended to make the land more usable and increase its value.

Fences

Structures built to enclose or separate areas, typically made out of wood, metal, or other materials, serving various purposes such as privacy, security, or decorative.

Interest

The cost of borrowing money, expressed as a percentage, charged by a lender to a borrower for the use of assets.