• Card 10 / 16: Which of the following changes in the financial market will lead to an increase in the quantity of loans made and received:
    a.) a rise in demand
    b.) a fall in demand
    c.) a rise in supply
    d.) a fall in supply

    Answer:
    a.) a rise in demand
    c.) a rise in supply

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Explanation:

a and c will increase the quantity of loans. More people who want to borrow will result in more loans being given, as will more people who want to lend.

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Microeconomics 04 Labor & Financial Markets

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Attribution:  Microeconomics, OpenStax-CNX Web site. Download for free at http://cnx.org/content/col11613/latest
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