Question: Select the three (3) correct answers: The demand curve does not move so the market can preserve the original market equilibrium price. Shift in the

 Select the three (3) correct answers: The demand curve does not

Select the three (3) correct answers: The demand curve does not move so the market can preserve the original market equilibrium price. Shift in the demand for loanable funds (from D1 to D2) but no change in the supply curve (S1). Borrowers must pay higher interest rates due to the shift in the demand curve. An upward movement along the S1 supply curve occurs until a new equilibrium interest level is reached. Shift in the supply for loanable funds but no change in the demand curve

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