In the figure to the right, the leftward shift from the demand for loanable funds curve DLF, to the demand for loanable funds curve DLF3, could be the result of A. the economy entering a recession. B. a increase in interest rates during an economic expansion. C. a government budget surplus. D. a decrease in interest rates during an economic recession. E. the economy entering an expansion. Real interest rate (percent per year) 10 8 2 0 DLF, DLF₂ DLF₂ 1.5 2.0 2.5 3.0 3.5 Loanable funds (trillions of 2005 dollars)

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter21: Financial Markets, Saving, And Investment
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In the figure to the right, the leftward shift from the demand for loanable funds curve DLF, to the demand for
loanable funds curve DLF3, could be the result of
OA the economy entering a recession.
OB. a increase in interest rates during an economic expansion.
OC. a government budget surplus.
O D. a decrease in interest rates during an economic recession.
O E. the economy entering an expansion.
Real interest rate (percent per year)
10-
8
0
I
DLF,
DLF₂
DLF3
1.5 2.0 2.5 3.0 3.5
Loanable funds (trillions of 2005 dollars)
Transcribed Image Text:In the figure to the right, the leftward shift from the demand for loanable funds curve DLF, to the demand for loanable funds curve DLF3, could be the result of OA the economy entering a recession. OB. a increase in interest rates during an economic expansion. OC. a government budget surplus. O D. a decrease in interest rates during an economic recession. O E. the economy entering an expansion. Real interest rate (percent per year) 10- 8 0 I DLF, DLF₂ DLF3 1.5 2.0 2.5 3.0 3.5 Loanable funds (trillions of 2005 dollars)
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