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

Demand and supply curves — practice question

The diagram illustrates the market for loanable funds. Which changes might make equilibrium shift from E1 to E2?

  • Aa decline in business confidence and an increase in bank lending
  • Ba decrease in bank lending and depletion of natural resources
  • Can increase in the propensity to save and the discovery of new mineral deposits
  • Dimprovements in technology and reduction in the propensity to save

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