Suppose investors become pessimistic about the economy, lowering their expected returns on investment projects. The results would
Question:
Suppose investors become pessimistic about the economy, lowering their expected returns on investment projects.
The results would include
a. a leftward shift in the supply of loanable funds.
b. a rightward shift in demand for loanable funds.
c. a smaller quantity of funds changing hands in the loanable funds market.
d. the interest rate falling.
e. both c and d.
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