A Decrease in Wealth Leads to a

question 266

Multiple Choice

A decrease in wealth leads to a

• A) leftward shift of the demand for loanable funds curve.
• B) downward movement along the supply of loanable funds curve.
• C) rightward shift of the supply of loanable funds curve.
• D) leftward shift of the supply of loanable funds curve.
• E) rightward shift of the demand for loanable funds curve.

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Definitions:

Market Output

The total amount of goods or services produced and offered for sale by businesses in a particular market.

External Costs

Costs that are not borne by the producer or consumer of a good or service but by society, such as pollution.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where market supply and demand balance each other.