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.
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.
Chapter21: Financial Markets, Saving, And Investment
Section: Chapter Questions
Problem 6P
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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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