demand curve?

5. In the financial market, what causes a movement along the supply curve? What causes a shift in the supply

curve?

6. If a usury law limits interest rates to no more than 35%, what would the likely impact be on the amount of

loans made and interest rates paid?

7. Which of the following changes in the financial market will lead to a decline in interest rates:

a. a rise in demand

b. a fall in demand

c. a rise in supply

d. a fall in supply

8. 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

9. Identify the most accurate statement. A price floor will have the largest effect if it is set:

a. substantially above the equilibrium price

b. slightly above the equilibrium price

c. slightly below the equilibrium price

d. substantially below the equilibrium price
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