Tackle the Test: Free-Response Questions

  1. Question

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    Rubric for FRQ 1 (6 points)

    1 point: Vertical axis labeled “Interest rate” or “r”

    1 point: Horizontal axis labeled “Quantity of loanable funds”

    1 point: Downward-sloping demand curve for loanable funds (labeled)

    1 point: Upward-sloping supply curve for loanable funds (labeled)

    1 point: Equilibrium quantity of loanable funds shown on horizontal axis below where curves intersect

    1 point: Equilibrium interest rate shown on vertical axis across from where curves intersect

    image

  2. Question

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    Does each of the following affect either the supply or the demand for loanable funds, and if so, does the affected curve increase (shift to the right) or decrease (shift to the left)?