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In 2 0 2 1 , the Lee family had a disposable income of $ 7 0 , 0 0 0 , wealth of $
In the Lee family had a disposable income of
$ wealth of $ and an expected future income of $ a year.
The graph shows the Lee family's supply of loanable funds curve.
In suppose the stock market booms and default risk decreases.
Draw a new curve to show the effect of the change in default risk on the Lee family's supply of loanable funds curve. Label it
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Loanable funds thousands of dollars per year
Real interest rate percent per year
SLF
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