If People Have a Sudden Increase in Confidence in the Open

question 74

Multiple Choice

If people have a sudden increase in confidence in the open economy of the U.S. and want to invest there, the:

• A) demand for loanable funds curve would shift left.
• B) demand for loanable funds curve would shift right.
• C) supply of loanable funds curve would shift left.
• D) supply of loanable funds curve would shift right.

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Definitions:

Start-up Companies

New business ventures that are in the initial phase of operations and typically characterized by innovative products or services and high growth potential.

Short-term Bank Loans

Loans offered by banks to be repaid within a short timeframe, typically less than a year, to meet immediate financial needs.

Secured

Pertaining to assets or loans that are protected by collateral to ensure repayment or mitigate risk.

Collateral

Assets or property pledged by a borrower to secure a loan or other credit, and subject to seizure on default.