-In the Above Figure, the Initial Supply of Loanable Funds

question 141

Multiple Choice

-In the above figure, the initial supply of loanable funds curve is SLF₀ and the initial demand for loanable funds curve is DLF₀. An economic expansion that raises disposable income and the expected profit would

• A) only shift the supply of loanable funds curve rightward to a curve such as SLF₁.
• B) shift the supply of loanable funds curve rightward to a curve such as SLF₁, and shift the demand for loanable funds curve rightward to a curve such as DLF₁.
• C) only shift the demand for loanable funds curve rightward to a curve such as DLF₁.
• D) have no effect on either the demand for loanable funds curve or the supply of loanable funds curve.

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Definitions:

Importance

the significance or value attached to something based on its relevance or impact.

Sherman Act

A foundational United States antitrust law enacted in 1890 to prohibit monopolies and practices that restrained trade and competition.

1890

A year significant in economic history, notably for the Sherman Antitrust Act's passage in the United States to combat anti-competitive practices.

Major Features

Principal characteristics or components that distinguish something from others.