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.

Fill in the Blank QuestionFill in the blank question.If a firm is willing to borrow more funds at the same interest rate, it is implied that the demand curve for loanable funds has shifted to the .

When a demand curve shifts to the rightMultiple Choicedemand has increased, so equilibrium price increases, and equilibrium quantity increases.demand has decreased, so equilibrium price decreases, and equilibrium quantity decreases.demand has increased, so supply also shifts to the right, and the equilibrium price increases.demand has decreased, so supply also shifts to the right, and the equilibrium price decreases.

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

All other things being equal, a decrease in the demand for loanable funds:Group of answer choicesmight not have any effect on the interest rate.results from an increase in business circumstances and a decrease in the level of savings.drives the interest rate down.drives the interest rate up.

If a consumer’s income increases: Group of answer choicesThere will be a change in demand.There will be a movement along the demand curve.There will be an increase in the quantity demanded, but the demand curve will not shift.b and c.None of the above.