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Below is a diagram of the loanable funds market. Explain two examples of things that might occur which would cause the supply curve to shift

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  1. Below is a diagram of the loanable funds market. Explain two examples of things that might occur which would cause the supply curve to shift from S1to S2.

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Real S2 interest rate Supply, S, Demand 0 L2 L1 Loanable funds (billions of dollars per year)

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