An increase in demand for loanable funds leads to
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1. The government engages in more deficit spending. Ceteris paribus (all else equal), this would cause:
a. Both the demand and supply of loanable funds decrease.
b. The demand for loanable funds to increase.
c. Both the demand and supply of loanable funds to increase.
d. Economic institutions to collapse.
e. The supply of loanable funds to increase.
Ā
2. A technological advance leads to a shift in:
a. Neither short-run nor long-run aggregate supply.
b. Only short-run aggregate supply.
c. Both short-run and long-run aggregate supply.
d. Only aggregate demand.
e. Only long-run aggregate supply.
An expectation that perceived business opportunities will increase will generally cause:
a. A shift to the left in the loanable funds demand curve.
b. A movement along the loanable funds demand curve.
c. The demand for loanable funds to increase.
d. The demand for loanable funds to decrease.
An increase in the federal budget deficit results in
A. An increase in the demand for bonds and an increase in the supply of loanable funds.
B. An increase in the demand for bonds and a decrease in the supply of loanable-funds.
C. An increase in the supply of bonds and an increase in the demand for loanable funds.
D. An increase in the supply of bonds and a decrease in the demand for loanable funds.