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

question 68

Multiple Choice

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

• A) an increase in the supply of loanable funds.
• B) expectations of forthcoming economic growth.
• C) an increase in the risk of bonds relative to other assets.
• D) an improvement in business prospects.

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Definitions:

Taking a Loss

A situation where a business or individual sells an asset for less than its purchase price, resulting in a financial deficit.

Marginal Revenue

The additional income received from selling one more unit of a good or service; it is a critical factor in decision-making for firms in competitive markets.

Total Revenue

The overall amount of money generated by a company from its business activities, usually from the sale of goods or services, before any costs or expenses are deducted.

Output Rising

A situation where the production of goods and services in an economy increases over a certain period.