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

question 184

Multiple Choice

-In the above figure, the initial supply of loanable funds curve is SLF? and the initial demand for loanable funds curve is DLF?. 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 SLF?.
• B) shift the supply of loanable funds curve rightward to a curve such as SLF?, and shift the demand for loanable funds curve rightward to a curve such as DLF?.
• C) only shift the demand for loanable funds curve rightward to a curve such as DLF?.
• D) have no effect on either the demand for loanable funds curve or the supply of loanable funds curve.

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Definitions:

Closing Entry

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent ones, preparing the accounts for the next period.