All Else Being Equal,the Demand Curve for Loanable Funds May

question 43

Multiple Choice

All else being equal,the demand curve for loanable funds may shift to the right (increase) as a result of:

• A) a fall in the supply of loanable funds.
• B) expectations of a forthcoming recession.
• C) technological improvements.
• D) a fall in business prospects.

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Definitions:

Inelastic Demand

A situation where the demand for a product does not significantly change with a change in price.

Good Substitutes

Products or services that can be used in place of each other, with consumers willing to switch from one to the other if the price or quality changes.

Necessity

Goods or services considered essential for basic human survival and well-being, such as food, water, and shelter.

Income Percentage

A measure or fraction of personal or household income, often used in context to describe expenditure, saving, or taxation ratios.