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List the Factors of Demand for Loanable Funds,and Explain What

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Essay

List the factors of demand for loanable funds,and explain what would cause each of them to shift the demand curve rightward.


Definitions:

Incremental Cash Flows

The additional cash flow a company generates from undertaking a new project, considering only the revenues and costs directly caused by the project.

Incremental Cash Flows

The additional cash flow a business receives from undertaking a new project.

Sunk Costs

Outlays already made that cannot be refunded or retrieved.

Project Value

The total worth of a project, calculated by evaluating all incoming and outgoing cash flows to determine its overall financial benefit.

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