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Figure 27-3 The figure shows two demand-for-loanable-funds curves and two supply-of-loanable-funds curves. A graph shows a straight line, D 1, decreasing linearly from left to
Figure 27-3 The figure shows two demand-for-loanable-funds curves and two supply-of-loanable-funds curves. A graph shows a straight line, D 1, decreasing linearly from left to right, a second straight line, D 2, decreasing linearly from left to right to the right of and parallel to D 1, a third straight line, S 1, increasing linearly from left to right, and a fourth straight line, S 2, increasing linearly from left to right to the left and parallel to S 1. Point A is marked on the point of intersection, or the equilibrium point, of S 1 and D 1. Point B is marked on the point of intersection of S 2 and D 1, before Point A. Point C is marked on the point of intersection of S 2 and D 2, above Point A. Point F is marked on the point of intersection of S 1 and D 2, after Point C. Refer to Figure 27-3. A shift of the supply curve from S1 to S2 is called a. an increase in the quantity of loanable funds supplied. b. a decrease in the quantity of loanable funds supplied. c. an increase in the supply of loanable funds. d
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