An Increase in ________ Will Shift the Supply of Loanable

question 97

Multiple Choice

An increase in ________ will shift the supply of loanable funds curve ________.

• A) expected future income; rightward
• B) wealth; leftward
• C) disposable income; leftward
• D) default risk; rightward

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Definitions:

Free Flow

An efficient or unobstructed movement or progress, commonly referred to in the context of ideas, goods, traffic, or energy.

Common European Currency

The Euro, which is the official currency used by the majority of countries within the European Union.

Political Risks

The potential for losses or uncertainties in business operations due to political decisions, conditions, or changes in a country.

Higher Productivity

An increase in the efficiency of production, often through better utilization of resources, leading to greater output for the same amount of input.