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(Figure: Market for Loanable Funds 2) Based on the Graph

Question 16

Multiple Choice

(Figure: Market for Loanable Funds 2) Based on the graph, if households decide to save a larger portion of their income because they fear job loss due to a recession, the loanable funds supply curve will shift from _____ to _____, and the new equilibrium will be at point _____, holding demand constant at D0. (Figure: Market for Loanable Funds 2) Based on the graph, if households decide to save a larger portion of their income because they fear job loss due to a recession, the loanable funds supply curve will shift from _____ to _____, and the new equilibrium will be at point _____, holding demand constant at D<sub>0</sub>. A) S<sub>0</sub>; S<sub>1</sub>; a B) S<sub>0</sub>; S<sub>1</sub>; b C) S<sub>1</sub>; S<sub>0</sub>; b D) S<sub>1</sub>; S<sub>0</sub>; d


A) S0; S1; a
B) S0; S1; b
C) S1; S0; b
D) S1; S0; d

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