Multiple Choice QuestionWhich of the following would result in a rightward shift of the supply curve for loanable funds?Multiple choice question.An increase in tastes and preferences for moneyAnything that causes households to increase savingsA decrease in tastes and preferences for moneyAnything that causes a decline in household savings
Question
Multiple Choice QuestionWhich of the following would result in a rightward shift of the supply curve for loanable funds?Multiple choice question.An increase in tastes and preferences for moneyAnything that causes households to increase savingsA decrease in tastes and preferences for moneyAnything that causes a decline in household savings
Solution
The correct answer is "Anything that causes households to increase savings".
Here's why:
The supply curve for loanable funds is determined by the willingness of households to save money. When households increase their savings, they are essentially supplying more loanable funds to the market. This increase in supply would cause the supply curve to shift to the right.
On the other hand, a decrease in tastes and preferences for money or anything that causes a decline in household savings would likely decrease the supply of loanable funds, causing a leftward shift in the supply curve. An increase in tastes and preferences for money doesn't directly affect the supply of loanable funds, so it wouldn't cause a rightward shift in the supply curve.
Similar Questions
Multiple Choice QuestionWhich of the following would cause the supply of loanable funds to shift to the left?Multiple choice question.Anything that causes a decline in savingsA decrease in a nation's incomeA decline in household spending on consumer goodsAnything that causes households to save more
Multiple Choice QuestionWhich of the following describes how the supply curve of loanable funds would be affected if the government expanded programs to cover medical costs more fully?Multiple choice question.The supply of loanable funds would decrease and shift to the rightThe supply of loanable funds would increase and shift to the rightThe supply of loanable funds would decrease and shift to the leftThe supply of loanable funds would increase and shift to the left
Multiple Choice QuestionWhich of the following describes the effect on the supply of loanable funds if interest earned on savings were to be suddenly exempted from taxes?Multiple choice question.The supply of loanable funds would decrease and shift to the rightThe supply of loanable funds would increase and shift to the rightThe supply of loanable funds would increase and shift to the leftThe supply of loanable funds would decrease and shift to the left
Multiple Choice QuestionWhich factor would increase the demand for loanable funds?Multiple choice question.Anything that increases the rate of return on potential investmentsAnything that would cause households to be thriftierAnything that would cause households to be less thriftyAnything that decreases the rate of return on potential investments
If there is a shortage of loanable funds, thenGroup of answer choicesneither curve shifts, but the quantity of loanable funds supplied increases and the quantity demanded decreases as the interest rate rises to equilibrium.the supply for loanable funds shifts right and the demand shifts left.the supply for loanable funds shifts left and the demand shifts right.neither curve shifts, but the quantity of loanable funds supplied decreases and the quantity demanded increases as the interest rate falls to equilibrium.
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