Which of the Following Decreases the Demand for Loanable Funds

question 34

Multiple Choice

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

• A)wealth decreases
• B)technology that increases productivity is introduced
• C)the economy experiences a recession
• D)the real interest rate rises
• E)an economy experiences a rapid increase in population

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Definitions:

Asset Account

Accounts on a balance sheet that represent the resources owned by a company, which are expected to provide future economic benefits.

Liabilities

Financial obligations of a business, including debts and other amounts owed to creditors.

Accounts Receivable

An asset account on the balance sheet that represents money owed to a company by customers for goods or services that have been delivered or used but not yet paid for.

Accounts Payable

Liabilities to creditors that are to be paid within a short period of time, typically within one year.