-Suppose That the Initial Supply of Loanable Funds Curve Is

question 54

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 whatsoever.

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

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Definitions:

Network Node

An individual electronic device in a network that can send, receive, or forward information.

Amplifies Signal

A process or device that increases the power, voltage, or current of a signal.

Derivative Action

In control systems, a feedback mechanism that is proportional to the rate of change of the error signal, used to predict and stabilize future system behavior.

Error Signal

A signal proportional to the difference between the actual output and the desired output.