K In the figure to the right, the leftward shift from the demand for loanable funds curve DLF, to the demand for loanable funds curve DLF3, could be the result of OA. the economy entering a recession. OB. the economy entering an expansion. OC. a decrease in interest rates during an economic recession. O D. a government budget surplus. OE. a increase in interest rates during an economic expansion. Real interest rate (percent per year) 10- 8 0 DLF, DLF₂ DLF3 1.5 2.0 2.5 3.0 3.5 Loanable funds (trillions of 2005 dollars)
K In the figure to the right, the leftward shift from the demand for loanable funds curve DLF, to the demand for loanable funds curve DLF3, could be the result of OA. the economy entering a recession. OB. the economy entering an expansion. OC. a decrease in interest rates during an economic recession. O D. a government budget surplus. OE. a increase in interest rates during an economic expansion. Real interest rate (percent per year) 10- 8 0 DLF, DLF₂ DLF3 1.5 2.0 2.5 3.0 3.5 Loanable funds (trillions of 2005 dollars)
Chapter21: Financial Markets, Saving, And Investment
Section: Chapter Questions
Problem 9P
Related questions
Question
![K
In the figure to the right, the leftward shift from the demand for loanable funds curve DLF, to the demand
for loanable funds curve DLF3, could be the result of
O A. the economy entering a recession.
B. the economy entering an expansion.
O C. a decrease in interest rates during an economic recession.
O D. a government budget surplus.
O E. a increase in interest rates during an economic expansion.
Real interest rate (percent per year)
10
8
6
4
2
0
DLF₁
DLF₂
DLF3
1.5 2.0 2.5 3.0 3.5
Loanable funds (trillions of 2005 dollars)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6c692a49-9425-4bdf-b0fa-872e0eef16fa%2F028707dc-41a0-4ad6-b74f-5644afb932d8%2Fjay1si_processed.png&w=3840&q=75)
Transcribed Image Text:K
In the figure to the right, the leftward shift from the demand for loanable funds curve DLF, to the demand
for loanable funds curve DLF3, could be the result of
O A. the economy entering a recession.
B. the economy entering an expansion.
O C. a decrease in interest rates during an economic recession.
O D. a government budget surplus.
O E. a increase in interest rates during an economic expansion.
Real interest rate (percent per year)
10
8
6
4
2
0
DLF₁
DLF₂
DLF3
1.5 2.0 2.5 3.0 3.5
Loanable funds (trillions of 2005 dollars)
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