Statistics Solutions

[Step-by-Step] Use the following graph to answer the questions. What might cause the supply curve for loanable funds to shift from S 1 to S 2 ? With the shift

Question: Use the following graph to answer the questions.

  1. What might cause the supply curve for loanable funds to shift from S 1 to S 2 ?
  2. With the shift in supply, what happens to the equilibrium quantity of loanable funds?
  3. With the change in the equilibrium quantity of loanable funds, what happens to the quantity of saving? What happens to the quantity of investment?

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