Suppose That the Initial Supply of Loanable Funds Curve Is

question 82

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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