What happens to the demand for loanable funds curve when the economy enters a recession?
A) The demand for loanable funds curve shifts leftward because wealth decreases.
B) The demand for loanable funds curve shifts leftward because expected profit falls.
C) The demand for loanable funds curve shifts leftward because the real interest rate falls.
D) The demand for loanable funds curve shifts rightward because the real interest rate falls.
E) The demand for loanable funds curve shifts rightward because expected profit falls.
B
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Which of the following constitutes a transfer payment?
a. Income taxes b. Corporate salaries c. Fiscal spending d. Dividend payments e. Welfare benefits
A surplus exists in a market if
a. there is an excess demand for the good. b. quantity demanded exceeds quantity supplied. c. the current price is above its equilibrium price. d. All of the above are correct.