The supply of loanable funds curve would be shifted to the l

The supply of loanable funds curve would be shifted to the left by

Solution

The supply of loanable funds curve will shift leftwards in case of decrease in supply of funds available for loan in the market. This is caused by increase in wealth and decrease in disposal income. Also, in case of increase in real interest rate, there will left shift in supply of loanable funds curve as the individual would prefer to invest their money rather than giving it on loan.