LF Which of the following reasons could cause the supply curve for loanable funds to shift to the left from Sp to Sin the figure? The economy is expected to go into a recession. The government ceases taxing interest earnings. Consumers become less patient. An existing investment tax credit is abolished.

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Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?
Section9.A: The Simple Algebra Of Income Determination And The Multiplier
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Figure: Loanable Funds Contraction
i₁
io
Qo
Q₁ Q₂
SUF
DLF
SLF
DILF
QLF
Which of the following reasons could cause the supply curve for loanable funds to shift to the left from S Lp to Sup in the
figure?
The economy is expected to go into a recession.
Transcribed Image Text:Figure: Loanable Funds Contraction i₁ io Qo Q₁ Q₂ SUF DLF SLF DILF QLF Which of the following reasons could cause the supply curve for loanable funds to shift to the left from S Lp to Sup in the figure? The economy is expected to go into a recession.
Which of the following reasons could cause the supply curve for loanable funds to shift to the left from SF to Sup in the
figure?
The economy is expected to go into a recession.
The government ceases taxing interest earnings.
Consumers become less patient.
An existing investment tax credit is abolished.
Transcribed Image Text:Which of the following reasons could cause the supply curve for loanable funds to shift to the left from SF to Sup in the figure? The economy is expected to go into a recession. The government ceases taxing interest earnings. Consumers become less patient. An existing investment tax credit is abolished.
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