The equilibrium interest rate increases and the economic conditions decreases then supply curve must shift to ____________?
Correct answer: C. up and to the left
- A. down and to the left
- B. down and to the right
- C. up and to the left
- D. up and to the rightAccounting & Auditing
Explanation
Worsening economic conditions usually reduce saving and the supply of loanable funds. The supply curve therefore shifts upward and to the left, raising the equilibrium interest rate.
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