Inflation Causes the Demand Curve for Loanable Funds to Shift

question 32

Multiple Choice

Inflation causes the demand curve for loanable funds to shift to the _____ and causes the supply curve to shift to the _____.

• A)left; right
• B)left; left
• C)right; left
• D)right; right

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Definitions:

Percent Change

A mathematical calculation that shows how much a quantity has increased or decreased, expressed as a percentage.

Initial Value

The starting point or original amount before any changes, such as growth or depreciation, have been applied.

Final Value

The value of an investment at the end of a specified period, taking into account factors like principal, interest rate, and time.

Percent Change

The proportionate change in a value over time, represented as a percentage, to indicate increase or decrease.