Question 21
2p
If the everyone in the economy (firms, citizens, etc.) became more uncertain about the future, the market
for loanable funds would be impacted. Specifically, because of the uncertainty, equilibrium interest rates
will and the equilibrium quantity of loanable funds will
Orise, fall, or not change (ambiguous effect); increase
Odecrease; rise, fall, or not change (ambiguous effect)
Orise, fall, or not change (ambiguous effect); decrease
Oincrease; rise, fall, or not change (ambiguous effect)
increase; decrease