As a Result of the Recession in 2008, the Default

question 122

Multiple Choice

As a result of the recession in 2008, the default risk increased. How did this change affect the loanable funds market?

• A) There was a movement up along the supply of loanable funds curve.
• B) There was a leftward shift in the supply of loanable funds curve.
• C) There was a movement down along the demand for loanable funds curve.
• D) There was a rightward shift in the supply of loanable funds curve.