If the demand for loanable funds shifts to the right, then initially there is a a...

Question

Question

If the demand for loanable funds shifts to the right, then initially there is a

a surplus so the interest rate will fall.

b shortage so the interest rate will fall.

c shortage so the interest rate will rise.

d surplus so the interest rate will rise.

Answer 1

Answer #1

Ans) the correct option is c shortage so the interest rate will rise.

If demand for loanable funds shifts to right then equilibrium interest rates And quanity of loanable funds rise

Answer 2

Similar Homework Help Questions

When the supply of loanable funds shifts its position to the right, interest rates will ________...

When the supply of loanable funds shifts its position to the right, interest rates will ________ because loanable funds will be ________. -rise;more scarce -rise;less scarce -fall;less scarce
The loanable funds market is in equilibrium. Due to a change in tax law, many workers...

The loanable funds market is in equilibrium. Due to a change in tax law, many workers increase the amount of their income that they devote to retirement savings (and consume less). What happens? The demand for loanable funds shifts to the right, and interest rates rise. The supply of loanable funds shifts to the right, and interest rates fall. The demand for loanable funds shifts to the left, and interest rates fall. The supply of loanable funds shifts left, and...
Please help me answer all greatly appreciated. Thumbs up a rise in demand for loanable funds...

Please help me answer all greatly appreciated. Thumbs up a rise in demand for loanable funds by a large country can result fall in interest rates Ono change in interest rates O an increase in the interest rate Onone of the answers are correct if wealth increases the loanable funds supply curve shifts to the right true false If you expect prices to continue to fall since they have been falling in the past three months, your are exhibiting adaptive...

In the open-economy macroeconomic model, if the supply of loanable funds shifts right Group of answer...

In the open-economy macroeconomic model, if the supply of loanable funds shifts right Group of answer choices the interest rate falls and the supply of dollars in the market for foreign-currency exchange shifts right. the interest rate falls and the supply of dollars in the market for foreign currency exchange shifts left. the interest rate rises and the demand for dollars in the market for foreign currency exchange shifts right. the interest rate rises and the demand for dollars in...
How does the supply or demand for loanable funds shift when a country increases its budget...

How does the supply or demand for loanable funds shift when a country increases its budget deficit? O a. The demand for loanable funds shifts right. 10 b. The supply of loanable funds shifts right. 10 c. The demand for loanable funds shifts left. O d. The supply of loanable funds shifts left.
Use the following to answer question 16: Figure: Loanable Funds Market 6% 4.5% 180 250 500...

Use the following to answer question 16: Figure: Loanable Funds Market 6% 4.5% 180 250 500 16. (Figure: Loanable Funds Market) At an interest rate of 3% in this market, A) there is a shortage of loanable funds of $320 million B) there is a surplus of loanable funds of $380 million. C) there is a shortage of loanable funds of $350 million. D) there is a surplus of loanable funds of $320 million.

Other things the same, an increase in taxes with no change in government purchases makes national...

Other things the same, an increase in taxes with no change in government purchases makes national saving a. rise. The supply of loanable funds shifts right. b. rise. The demand for loanable funds shifts right. c. fall. The supply of loanable funds shifts left. d. fall. The demand for loanable funds shifts left.
30. Other things the same, an increase in taxes with no change in government purchases makes national saving a rise...

30. Other things the same, an increase in taxes with no change in government purchases makes national saving a rise. The supply of loanable funds shifts right. b. rise. The demand for loanable funds shifts right. c. fall. The supply of loanable funds shifts left. d. fall. The demand for Ioanable funds shifts left.
1. If there is a shortage of loanable funds, then a. the quantity of loanable funds...

1. If there is a shortage of loanable funds, then a. the quantity of loanable funds demanded is greater than the quantity of loanable funds supplied and the interest rate is above equilibrium b. the quantity of loanable funds demanded is greater than the quantity of loanable funds supplied and the interest rate is below equilibrium c. the quantity of loanable funds supplied is greater than the quantity of loanable funds demanded and the interest rate is above equilibrium d....

oanable funds increase What would make both the equilibrium interest rate and the equilibrium quantity of...

oanable funds increase What would make both the equilibrium interest rate and the equilibrium quantity of loanable funds increase? 10 a. The supply of loanable funds shifts right. O b. The supply of loanable funds shifts left. O c. The demand for loanable funds shifts right. O d. The demand for loanable funds shifts left.