Question : 51) When disposable income increases, saving will A) decrease and there : 1227786

51) When disposable income increases, saving will

A) decrease and there is a movement downward along the supply of loanable funds curve.

B) increase and there is a movement upward along the supply of loanable funds curve.

C) not change.

D) increase and the supply of loanable funds curve shifts rightward.

E) decrease and the supply of loanable funds curve shifts leftward.

52) If the disposable income decreases, then

A) the supply of loanable funds increases.

B) the supply of loanable funds decreases.

C) the quantity of loanable funds demanded increases.

D) the quantity of loanable funds supplied decreases.

E) the demand for loanable funds increases.

53) If expectations about future income change, there is

A) no change in saving until income actually changes.

B) a decrease in saving if people expect income to increase in the future.

C) an increase in saving if people expect income to increase in the future.

D) a decrease saving if people expect income to decrease in the future.

E) a change in the quantity of loanable funds supplied and a movement along the supply of loanable funds curve.

54) If expected future income increases, then

A) the supply of loanable funds increases.

B) the supply of loanable funds decreases.

C) the quantity of loanable funds demanded increases.

D) the quantity of loanable funds supplied decreases.

E) the demand for loanable funds decreases.

55) In 2008 the fall in the value of the stock market decreased people’s wealth. As a result of this change alone, the supply of loanable funds

A) increased.

B) did not change and there was no movement along the supply of loanable funds curve.

C) decreased.

D) did not change and there was an upward movement along the supply of loanable funds curve.

E) did not change and there was a downward movement along the supply of loanable funds curve.

56) When ________ changes, the supply of loanable funds curve shifts.

A) the expected rate of profit

B) people’s expected future income

C) the price level

D) “animal spirits”

E) investment

57) Which of the following factors changes saving supply and hence shifts the supply of loanable funds curve?

i.disposable income

ii.wealth

iii.expected profit

A) i only

B) ii only

C) iii only

D) i and ii

E) i, ii, and iii

58) Which of the following shifts the supply of loanable funds curve?

A) change in the real interest rate

B) change in investment demand

C) change in disposable income

D) change in expected profit

E) change in “animal spirits”

59) A fall in the real interest rate brings a

A) movement up along the supply of loanable funds curve.

B) rightward shift of the supply of loanable funds curve.

C) movement down along the supply of loanable funds curve.

D) leftward shift of the supply of loanable funds curve.

E) rightward shift of the demand for loanable funds curve.

60) If the real interest rate rises, then the

A) supply of saving increases and the supply of loanable funds curve shifts rightward.

B) supply of saving decreases and the supply of loanable funds curve shifts leftward.

C) quantity of saving increases and there is a movement up along the supply of loanable funds curve.

D) quantity of saving decreases and there is a movement down along the supply of loanable funds curve.

E) demand for investment decreases and the demand for loanable funds curve shifts leftward.