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
You might also like to view...
The Federal Reserve could target both the money supply and the interest rate at the same time if it controlled money demand along with money supply
Indicate whether the statement is true or false
Suppose that the exchange rate between Japanese yen and U.S. dollars is originally 130 yen to the dollar. If it then changes to 150 yen to the dollar, the price of U.S. goods to Japanese importers will: a. rise
b. fall. c. stay the same. d. change in an indeterminate direction.
Which of the following statements is true of wages, educational attainment, and gender?
a. Male workers are compensated for attending college, while female workers generally are not. b. Female workers are compensated for attending college, while male workers generally are not. c. Both genders receive a higher wage for attending college. d. Neither gender receives a higher wage for attending college.
The one word in the definition of economics that focuses on the fact that it is impossible to provide all of the goods and services that everyone wants is
A. allocation. B. scarcity. C. study. D. resources.