Question : 71) When wealth ________, saving supply ________ and the supply : 1227788

71) 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

72) 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

73) 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.

74) 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

75) 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.

76) 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.

77) 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

78) 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

79) If a surplus of loanable funds exists in the loanable funds market, the real interest rate ________ and the quantity of saving ________.

A) rises; increases

B) rises; decreases

C) falls; increases

D) falls; decreases

E) falls; does not change

80) The equilibrium real interest rate is 5 percent. If the real interest rate is

A) 3 percent, then the supply of loanable funds curve will shift leftward as new savers enter the market.

B) 6 percent, the demand for loanable funds curve will shift rightward as firms enter the market to borrow at the lower rate.

C) 8 percent, there is a surplus of loanable funds.

D) 2 percent, there is a shortage of loanable funds.

E) anything other than 5 percent, the supply of loanable funds curve and/or the demand for loanable funds curve will shift to move the real interest rate to 5 percent.