Economics 9708 · AS & A Level · Demand and supply curves

Demand and supply curves — practice question

The diagram illustrates the demand curves and supply curves for loanable funds. Which changes might lead the equilibrium in the loanable funds market to shift from E1 to E2?

  • Aa decrease in bank lending combined with a decrease in business confidence
  • Ba decrease in the money supply combined with an increase in the propensity to consume
  • Can increase in bank lending combined with an increase in the productivity of capital
  • Dan increase in the money supply combined with a decrease in the productivity of labour

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