Loanable Funds Q

All else constant, which of the following does NOT cause the supply curve of loanable funds to shift to the right?: A. increase in tax rates for everyone. B. removal of reserve requirements maintained by banks. C. fear of major job losses soon to come. D. Fed’s decision to buy a large amount of Treasuries from local dealers.


A or C


I’m an idiot, I say A

i choose the mode value of all answers…

your clearly not a contrarian investor are you? More of a “follow the smart money” haha

Hey getterdone, i have to leave this thread now… But we can discuss an other time. And don’t call yourself idiot . That’s not true. Good night and best wishes.

Cheers cfaisok

Dreary whats the answer?

C I guess

…sorry, I had to step away for some real life matters, answer is A.

woooooowww got it right! After the change of course haha

any explanation for A and C? I have no idea

heha168 Wrote: ------------------------------------------------------- > any explanation for A and C? > I have no idea Me either

Loss of job fear causes people to save more money (that’s the explanation given, but I’m not sure - comments?) If people pay more taxes, then the amount of funds avaiable for loaning and investing will be reduced. Answer A.


C–> under the anticipation of major job loss, people tend to hold money for future use and therefore not contributing to increase in loanable funds. A makes sense too, but why would you choose A over C ?? Where did you get this question ??

make sense for A C is weird

Schewser Book 6.