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Explain how each of the following events would affect the supply of loanable funds curve: 1. The economy is in a recession, so people's disposable
Explain how each of the following events would affect the supply of loanable funds curve:
1. The economy is in a recession, so people's disposable income is lower. (1 long paragraph)
2. The stock market is booming so people's wealth is higher. (1 long paragraph)
3. The real interest rate increases. (1 long paragraph)
4. The future looks a bit grimmer, so expected future income is lower.(1 long paragraph)
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