Question : 71) A decrease in wealth leads to a A) leftward shift : 1238006

71) A decrease in wealth leads to a

A) leftward shift of the demand for loanable funds curve.

B) downward movement along the supply of loanable funds curve.

C) rightward shift of 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.

72) An increase in wealth ________ saving supply, and the supply of loanable funds curve ________.

A) decreases; shifts rightward

B) decreases; shifts leftward

C) increases; shifts rightward

D) increases; shifts leftward

E) does not change; does not shift

73) When wealth ________, saving supply ________, and the supply of loanable funds curve shifts ________.

A) decreases; decreases; leftward

B) increases; increases; leftward

C) decreases; decreases; rightward

D) increases; decreases; leftward

E) increases; increases; rightward

74) An increase in people’s expected future disposable income ________ saving supply, and the supply of loanable funds curve ________.

A) decreases; shifts rightward

B) decreases; shifts leftward

C) increases; shifts rightward

D) increases; shifts leftward

E) does not change; does not shift

75) A decrease in expected future income leads to a

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

B) downward movement along the supply of loanable funds curve.

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

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

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

76) Suppose that the initial supply of loanable funds curve is SLF1. In the figure above, an increase in the real interest rate leads to

i.a shift in the supply of loanable funds curve from SLF1 to SLF2.

ii.a shift in the supply of loanable funds curve from SLF1 to SLF3.

iii.a movement along the supply of loanable funds curve SLF1.

iv.no change whatever.

A) i only

B) ii only

C) iii only

D) i and iii

E) iv only

77) In the figure above, the shift in the supply of loanable funds curve from SLF1 to SLF2 could be the result of

A) an increase in the real interest rate.

B) a decrease in disposable income.

C) an increase in expected rate of profit.

D) a decrease in wealth

E) an increase in expected future disposable income.

78) In the loanable funds market, a shortage of loanable funds occurs when the

A) demand for loanable funds exceeds supply of loanable funds.

B) supply of loanable funds exceeds demand for loanable funds.

C) quantity of loanable funds supplied exceeds the quantity of loanable funds demanded.

D) quantity of loanable funds demanded exceeds the quantity of loanable funds supplied.

E) supply of loanable funds curve shifts rightward.

79) If the real interest rate is less than the equilibrium real interest rate, there is a ________ of loanable funds, and ________.

A) surplus; some borrowers cannot find the funds they want

B) shortage; some borrowers cannot find the funds they want

C) surplus; borrowers have an easy time finding the funds they want

D) shortage; borrowers have an easy time finding the funds they want

E) shortage; savers increase their saving supply to restore the equilibrium

80) When the real interest rate ________ the equilibrium real interest rate, there is a ________ of loanable funds and the real interest rate ________.

A) exceeds; surplus; rises

B) is less than; surplus; rises

C) exceeds; shortage; rises

D) is less than; shortage; rises

E) is less than; shortage; falls