Which of the following could explain an increase in the equilibrium interest rate and a decrease in the equilibrium quantity of loanable funds? 1) The demand curve for loanable funds shifted right. • 2) The demand curve for loanable funds shifted left. 3) The supply curve of loanable funds shifted right. 4) The supply curve of loanable funds shifted left.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter21: Financial Markets, Saving, And Investment
Section: Chapter Questions
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Which of the following could explain an increase in the equilibrium interest rate and a decrease in the equilibrium quantity of
loanable funds?
1) The demand curve for loanable funds shifted right.
• 2) The demand curve for loanable funds shifted left.
3) The supply curve of loanable funds shifted right.
4) The supply curve of loanable funds shifted left.
Transcribed Image Text:Which of the following could explain an increase in the equilibrium interest rate and a decrease in the equilibrium quantity of loanable funds? 1) The demand curve for loanable funds shifted right. • 2) The demand curve for loanable funds shifted left. 3) The supply curve of loanable funds shifted right. 4) The supply curve of loanable funds shifted left.
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Market for loanable funds shows demand and supply for loanable funds and equilibrium in the market is reached at the intersection of demand and supply of loanable funds

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