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The supply curve for loanable funds would increase due to a(n)
Present Values
The today's worth of a future cash amount or cash flow series, determined by a given rate of return.
Discounting
The process of determining the present value of future cash flows by applying a discount rate, reflecting the time value of money.
Compounding
The process in which the value of an investment increases because the earnings on an investment, both capital gains and interest, earn interest as time passes.
Effective Annual Rates
The interest rate on a loan or financial product restated from the nominal rate as an annual rate that accounts for compounding over a given period.
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