If Households Believe They Will Experience Higher Income in the near Future

question 71

Multiple Choice

If households believe they will experience higher income in the near future, there is a

• A)rightward shift of the supply of loanable funds curve.
• B)leftward shift of the supply of loanable funds curve.
• C)movement up along the supply of loanable funds curve.
• D)movement down along the demand for loanable funds curve.
• E)rightward shift of the demand for loanable funds curve.

---

Definitions:

Investment Period

The investment period refers to the span of time during which an investor holds onto a particular investment, aiming for it to appreciate in value or generate income.

Future Value

The predicted value of an investment or asset at a specified future date, considering factors like interest rates or returns, often used in financial planning and analysis.

Stated Rate of Interest

The annual interest rate declared on a financial instrument, not accounting for compounding or fees.

Investment

The act of allocating resources, usually money, with the expectation of generating an income or making a profit.