As a result of the recession in 2008, the default risk increased. How did this change affect the loanable funds market?
A) There was a movement down along the demand for loanable funds curve.
B) There was a movement up along the supply of loanable funds curve.
C) There was a leftward shift in the supply of loanable funds curve.
D) There was a rightward shift in the supply of loanable funds curve.
Correct Answer:
Verified
Q103: Households will choose to save more if
A)
Q135: An increase in will shift the supply
Q136: The greater a household's the less is
Q137: The supply of loanable funds is the
Q138: As the rises, the supply of loanable
Q141: If the real interest rate is below
Q142: When the actual real interest rate is
Q143: If the real interest rate is below
Q144: In the market for loanable funds, as
Q145: The equilibrium real interest rate is determined
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents