The reason why in the market of loanable funds the supply curve slopes upward to the right Concept Introduction: In the market of loanable funds which is the market where individual wish to borrow fund or save in order to earn interest.

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Figure: Supply of Loanable Funds) Use Figure: Supply of Loanable Funds. When the interest rate rises from 6% to 8%, the: Interest -ate (%) 12 10 8 6 4 2 S 0 10 20 30 40 50 60 70 80 90 Loanable funds (billions of dollars) O quantity of loanable funds supplied falls by $20 billion. supply of loanable funds falls by $10 billion... quantity of loanable funds supplied rises by $20 billion. O supply of loanable funds rises by $20 billion.

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Chapter 13, Problem 2.4P

To determine

The reason why in the market of loanable funds the supply curve slopes upward to the right

Concept Introduction:

In the market of loanable funds which is the market where individual wish to borrow fund or save in order to earn interest.

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Figure: Supply of Loanable Funds) Use Figure: Supply of Loanable Funds. When the interest rate rises from 6% to 8%, the: Interest -ate (%) 12 10 8 6 4 2 S 0 10 20 30 40 50 60 70 80 90 Loanable funds (billions of dollars) O quantity of loanable funds supplied falls by $20 billion. supply of loanable funds falls by $10 billion... quantity of loanable funds supplied rises by $20 billion. O supply of loanable funds rises by $20 billion.

Question 29 How would this expenditure affect the loanable funds market? [Select] [Select] Supply of loans shifts to the right. Demand for loans shifts to the right.

3. Supply and demand for loanable funds The following graph shows the market for loanable funds in a closed economy. The upward-sloping orange line represents the supply of loanable funds, and the downward-sloping blue line represents the demand for loanable funds. Supply Demand 100 200 300 400 500 600 700 800 900 1000 1100 1200 LOANABLE FUNDS (Bons of dollars) is the source of the supply of loanable funds. As the interest rate rises, the quantity of loanable funds supplied than the quantity of loans the interest rates they charge, the quantity of loanable funds demanded, moving the market Suppose the interest rate is 5.5%. Based on the previous graph, the quantity of loanable funds supplied is demanded, resulting in a of loanable funds. This would encourage lenders to thereby the quantity of loanable funds supplied and toward the equilibrium interest rate of %