6. If there is a shortage in the market for loanable funds, what happens? (A) The supply for loanable funds shifts right and demand shifts left. (B) Neither curve shifts. The quantity of loanable funds supplied decreases and the quantity demanded rises as the interest rate falls to equilibrium. (C) The supply of loanable funds shifts left and demand shifts right. (D) Neither curve shifts. The quantity of loanable funds supplied increases and the quantity demanded decreases as the interest rate rises to equilibrium.
6. If there is a shortage in the market for loanable funds, what happens? (A) The supply for loanable funds shifts right and demand shifts left. (B) Neither curve shifts. The quantity of loanable funds supplied decreases and the quantity demanded rises as the interest rate falls to equilibrium. (C) The supply of loanable funds shifts left and demand shifts right. (D) Neither curve shifts. The quantity of loanable funds supplied increases and the quantity demanded decreases as the interest rate rises to equilibrium.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Need help with
![6. If there is a shortage in the market for loanable funds, what happens?
(A) The supply for loanable funds shifts right and demand shifts left.
(B) Neither curve shifts. The quantity of loanable funds supplied decreases and the
quantity demanded rises as the interest rate falls to equilibrium.
(C) The supply of loanable funds shifts left and demand shifts right.
(D) Neither curve shifts. The quantity of loanable funds supplied increases and the
quantity demanded decreases as the interest rate rises to equilibrium.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2766aa1e-a7eb-4016-8f50-49dcf3a14bea%2F0cc6b0b9-c0de-4ed2-8b66-1179a754f1e2%2Fvj884zl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:6. If there is a shortage in the market for loanable funds, what happens?
(A) The supply for loanable funds shifts right and demand shifts left.
(B) Neither curve shifts. The quantity of loanable funds supplied decreases and the
quantity demanded rises as the interest rate falls to equilibrium.
(C) The supply of loanable funds shifts left and demand shifts right.
(D) Neither curve shifts. The quantity of loanable funds supplied increases and the
quantity demanded decreases as the interest rate rises to equilibrium.
![5. Which of the following statements is TRUE?
(A) When supply rises, the price goes up.
(B) The GDP deflator can measure inflation.
(C) When demand falls, quantity rises.
(D) The Bank of Canada controls all interest rates.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2766aa1e-a7eb-4016-8f50-49dcf3a14bea%2F0cc6b0b9-c0de-4ed2-8b66-1179a754f1e2%2F6semqt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5. Which of the following statements is TRUE?
(A) When supply rises, the price goes up.
(B) The GDP deflator can measure inflation.
(C) When demand falls, quantity rises.
(D) The Bank of Canada controls all interest rates.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education