Everything else remaining unchanged, what is likely to happen to the equilibrium quantity of credit and the real interest rate if:
a. the credit demand curve shifts to the right?
b. the credit supply curve shifts to the left?
What will be an ideal response?
a. Everything else remaining unchanged, if the credit demand curve shifts to the right, there will be an increase in both the equilibrium quantity of credit and the real interest rate.
b. Everything else remaining unchanged, if the credit supply curve shifts to the left, there will be an increase in the equilibrium real interest rate but a decrease in the equilibrium quantity of credit.
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