Changes in all of the following shift the supply curve of loanable funds except
A)disposable income.
B)the real interest rate.
C)wealth.
D)default risk.
E)expected future income.

Question

Quizplus · Accepted Answer

The real interest rate does not shift the supply curve of loanable funds; instead, it moves along the curve as it is the price of borrowing. Changes in disposable income, wealth, default risk, and expected future income can shift the supply curve by affecting how much money people are willing or able to lend.

Changes in All of the Following Shift the Supply Curve