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In the Market for Loanable Funds, Which of These Would

Question 116

Multiple Choice

In the market for loanable funds, which of these would cause the equilibrium interest rate to rise, but would have an uncertain impact on the equilibrium quantity?


A) Job security for employees increases, and there is an advancement in technology that would reduce costs if adopted.
B) Job security for employees falls, and the government increases regulation of business production methods.
C) There is an increase in tax breaks for saving toward retirement, and there are reduced expectations for business profits.
D) There is a surge in the stock market and an increase in average household income.

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