Which of the Following Shifts the Demand for Loanable Funds

question 129

Multiple Choice

Which of the following shifts the demand for loanable funds curve leftward?

• A) a decrease in the expected profit
• B) a decrease in the taxes paid by the business
• C) a rise in the real interest rate
• D) a fall in the real interest rate

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Definitions:

Discretionary Costs

Expenses that are not essential for the operation of a business, such as advertising or research and development, which can be adjusted or eliminated depending on financial performance.

Research and Development

A business or government activity that involves the investment of resources in the development and refinement of new products, services, or processes.

Service Department

A segment of an organization that does not directly produce goods but provides support services to other departments that do.

Service Orders

Requests or instructions for maintenance, repairs, or other service activities, typically issued by customers or companies.