As a result of the recession in 2008, the default risk increased. How did this change affect the loanable funds market?
A) There was a movement up along the supply of loanable funds curve.
B) There was a leftward shift in the supply of loanable funds curve.
C) There was a movement down along the demand for loanable funds curve.
D) There was a rightward shift in the supply of loanable funds curve.
Question 2
In the above figure, if the real wage is 10 per hour, a labor
A) shortage will occur and the real wage will rise.
B) shortage will occur and the real wage will fall.
C) surplus will occur and the real wage will rise.
D) surplus will occur and the real wage will fall.
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