Solved

-In the Above Figure, the Initial Supply of Loanable Funds

Question 99

Multiple Choice

-In the above figure, the initial supply of loanable funds curve is SLF<sub>0</sub> and the initial demand for loanable funds curve is DLF<sub>0</sub>. An increase in the expected profit would A) only shift the supply of loanable funds curve rightward to a curve such as SLF<sub>1</sub>. B) shift the supply of loanable funds curve rightward to a curve such as SLF<sub>1</sub>, and shift the demand for loanable funds curve rightward to a curve such as DLF<sub>1</sub>. C) only shift the demand for loanable funds curve rightward to a curve such as DLF<sub>1</sub>. D) have no effect on either the demand for loanable funds curve or the supply of loanable funds curve.
-In the above figure, the initial supply of loanable funds curve is SLF0 and the initial demand for loanable funds curve is DLF0. An increase in the expected profit would


A) only shift the supply of loanable funds curve rightward to a curve such as SLF1.
B) shift the supply of loanable funds curve rightward to a curve such as SLF1, and shift the demand for loanable funds curve rightward to a curve such as DLF1.
C) only shift the demand for loanable funds curve rightward to a curve such as DLF1.
D) have no effect on either the demand for loanable funds curve or the supply of loanable funds curve.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q94: As the purchasing power of wealth increases,

Q95: Suppose that expected profit decreases. This change

Q96: Suppose that a bond promises to pay

Q97: An increase in _ will shift the

Q98: In the loanable funds market, if the

Q100: The supply of loanable funds curve shifts

Q101: In 2008, the many people became unable

Q102: The University of Central Florida (UCF) wanted

Q103: Expected profit and the real interest rate

Q104: Which of the following will shift the