Multiple Choice
What changes will a shortage of loanable funds induce in a savings-investment diagram in a closed economy?
A) The demand for loanable funds curve will shift right, so the interest rate will rise.
B) The supply of loanable funds curve will shift left, so the interest rate will fall.
C) There will be no shifts of the curves, but the interest rate will rise.
D) There will be no shifts of the curves, but the interest rate will fall.
Correct Answer:
Verified
Correct Answer:
Verified
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