Refer to the graph below to answer questions 2 and 3: Interest Rate Quantity of Loanable Funds On the graph, an increase in expected rates of return would cause: a. the interest rate to increase O b. the quantity of saving and borrowing to decrease C. Both of the above O d. Neither of the above QUESTION 3 On the graph, a decrease in expected rates of return would cause a. the demand curve to shift to the right b. the demand curve to shift to the left the supply curve to shift to the right d. the supply curve to shift to the left S

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
Section: Chapter Questions
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Question
6
Refer to the graph below to answer questions 2 and 3.
Interest
Rate
Quantity of Loanable Funds
On the graph, an increase in expected rates of return would cause:
a. the interest rate to increase
O b. the quantity of saving and borrowing to decrease
OC. Both of the above
Od. Neither of the above
QUESTION 3
On the graph, a decrease in expected rates of return would cause
s. the demand curve to shift to the right
b. the demand curve to shift to the left
the supply curve to shift to the right
d. the supply curve to shift to the left
Transcribed Image Text:Refer to the graph below to answer questions 2 and 3. Interest Rate Quantity of Loanable Funds On the graph, an increase in expected rates of return would cause: a. the interest rate to increase O b. the quantity of saving and borrowing to decrease OC. Both of the above Od. Neither of the above QUESTION 3 On the graph, a decrease in expected rates of return would cause s. the demand curve to shift to the right b. the demand curve to shift to the left the supply curve to shift to the right d. the supply curve to shift to the left
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