Multiple Choice
-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 only
B) ii only
C) iii only
D) i and iii
E) iv only
Correct Answer:

Verified
Correct Answer:
Verified
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