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Suppose That the Initial Supply of Loanable Funds Curve Is

Question 25

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   Suppose that the initial supply of loanable funds curve is SLF1. In the figure above, an increase in the real interest rate leads to I. a shift in the supply of loanable funds curve from SLF1 to SLF2. Ii. a shift in the supply of loanable funds curve from SLF1 to SLF3.  iii. a movement along the supply of loanable funds curve SLF1. Iv. no change whatever. A) i and iii B) ii only C) iii only D) i only E) iv only

Suppose that the initial supply of loanable funds curve is SLF1. In the figure above, an increase in the real interest rate leads to
I. a shift in the supply of loanable funds curve from SLF1 to SLF2.
Ii. a shift in the supply of loanable funds curve from SLF1 to SLF3.
iii. a movement along the supply of loanable funds curve SLF1.
Iv. no change whatever.


A) i and iii
B) ii only
C) iii only
D) i only
E) iv only

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