Question: Use the following graph to answer the questions. a. Does the shift from S1 to S2 represent an increase or a decrease in the supply

Use the following graph to answer the questions.

a. Does the shift from S1 to S2 represent an increase or a decrease in the supply of loan able funds?
b. With the shift in supply, what happens to the equilibrium quantity of loan able funds?
c. With the change in the equilibrium quantity of loan able funds, what happens to the quantity of saving? What happens to the quantity of investment?

Real interest rate 's* D, Loanable funds (dollars per year)

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