Which of the following decreases the demand for loanable funds ...

[Haya94]

Which of the following decreases the demand for loanable funds and shifts the demand for loanable funds curve leftward?
 
  A) The real interest rate rises.
  B) The economy experiences a recession.
  C) Wealth decreases.
  D) Technology that increases productivity is introduced.
  E) An economy experiences a rapid increase in population.

Question 2

Which of the following events could result in the consumption function shifting from CF0 to CF2?
 
  A) an increase in disposable income
  B) an increase in expected future income
  C) a decrease in wealth
  D) a decrease in the real interest rate
  E) a decrease in disposable income
 
  The figure above shows two aggregate expenditure lines.

[aliotak]

Answer to Question 1

B

Answer to Question 2

C

[Haya94]

Thank you

[aliotak]

No problemo