Use the Following to Answer Questions

question 219

Multiple Choice

Use the following to answer questions
Figure: Loanable Funds Expansion

-(Figure: Loanable Funds Expansion) Which of the following reasons could cause the demand curve for loanable funds to shift to the right from D_LF to D¹_LF in the figure?

• A) The economy is expected to boom,thereby increasing investment returns.
• B) Larger investment projects with potentially higher returns get funded.
• C) Falling interest rates make it less expensive for firms to borrow.
• D) Rising interest rates make it more attractive for savers to save.

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