ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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K
In the figure to the right, the leftward shift from the demand for loanable funds curve DLF, to the demand
for loanable funds curve DLF3, could be the result of
O A. the economy entering a recession.
B. the economy entering an expansion.
O C. a decrease in interest rates during an economic recession.
O D. a government budget surplus.
O E. a increase in interest rates during an economic expansion.
Real interest rate (percent per year)
10
8
6
4
2
0
DLF₁
DLF₂
DLF3
1.5 2.0 2.5 3.0 3.5
Loanable funds (trillions of 2005 dollars)
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Transcribed Image Text:K In the figure to the right, the leftward shift from the demand for loanable funds curve DLF, to the demand for loanable funds curve DLF3, could be the result of O A. the economy entering a recession. B. the economy entering an expansion. O C. a decrease in interest rates during an economic recession. O D. a government budget surplus. O E. a increase in interest rates during an economic expansion. Real interest rate (percent per year) 10 8 6 4 2 0 DLF₁ DLF₂ DLF3 1.5 2.0 2.5 3.0 3.5 Loanable funds (trillions of 2005 dollars)
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