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 ________.
? rise, fall, or not change (ambiguous effect); increase
? decrease; rise, fall, or not change (ambiguous effect)
? rise, fall, or not change (ambiguous effect); decrease
? increase; rise, fall, or not change (ambiguous effect)
? increase; decrease