Question
Why does increased business confidence shift the demand curve for loanable funds? a. Higher business confidence means firms believe they will get a higher return
Why does increased business confidence shift the demand curve for loanable funds?
a.
Higher business confidence means firms believe they will get a higher return on their investments so they are incentivised to loan money to other firms.
b.
Higher business confidence means firms believe they will get a higher return on their investments so they are incentivised to borrow more to invest.
c.
Higher business confidence means firms believe they will get a higher return on their investments so they are incentivised to save more.
d.
Higher business confidence does not shift the demand curve for loanable funds.
e.
Higher business confidence means individuals believe they will get a higher return on their investments so they are incentivised to borrow more to spend on consumption.
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