In a Business Cycle Recession, Which of the Following Occurs

question 69

Multiple Choice

In a business cycle recession, which of the following occurs?

• A) The quantity of investment demanded increases and there is a movement down along the demand for loanable funds curve but no shift in the curve.
• B) The quantity of investment demanded decreases and there is a rightward shift of the demand for loanable funds curve.
• C) The quantity of investment demanded decreases and there is a movement up along the demand for loanable funds curve but no shift in the curve.
• D) Investment demand increases and the demand for loanable funds curve shifts rightward.
• E) Investment demand decreases and the demand for loanable funds curve shifts leftward.

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Definitions:

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