Question

The monetary expansion decreases and there is an increase in equilibrium interest rate then supply curve of funds must shift

a.

down and to the left

b.

down and to the right

c.

up and to the left

d.

up and to the right

Answer: (c).up and to the left

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Q. The monetary expansion decreases and there is an increase in equilibrium interest rate then supply curve of funds must shift

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