What Happens to Each of the Following If the Supply

question 281

Essay

What happens to each of the following if the supply of loanable funds shifts left?
a. the interest rate
b. net capital outflow
c. the exchange rate

---

Definitions:

18th Amendment

An amendment to the U.S. Constitution prohibiting the manufacture, sale, and transportation of alcoholic beverages; later repealed by the 21st Amendment.

Import Quotas

Limitations set by a government on the number or value of goods that can be imported into a country within a specified time frame.

Current Drinkers

Individuals who consume alcohol and have done so recently, within a specific timeframe defined by a study or survey.

18th Amendment

An amendment to the United States Constitution that prohibited the manufacture, sale, and transportation of alcoholic beverages, later repealed by the 21st Amendment.