What Is a Possible Reason Behind Restricted Supply of Spot

question 113

Multiple Choice

What is a possible reason behind restricted supply of spot loans to borrowers during a credit crunch?

• A)Expansionary monetary policy actions of the Federal Reserve.
• B)FI's increased aversion toward lending.
• C)Shift to the right in the loan supply function at all interest rates.
• D)Low aggregate demand from borrowers to take down loan commitments.
• E)Decrease in cost of funds.

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