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Figure: Loanable Funds Expansion
Use the following to answer questions Figure: Loanable Funds Expansion -(Figure: Loanable Funds Expansion) Which of the following reasons could cause the demand curve for loanable funds to shift to the right from D<sub>LF </sub>to D<sup>1</sup><sub>LF</sub> in the figure? A) The economy is expected to boom,thereby increasing investment returns. B) Larger investment projects with potentially higher returns get funded. C) Falling interest rates make it less expensive for firms to borrow. D) Rising interest rates make it more attractive for savers to save.
-(Figure: Loanable Funds Expansion) Which of the following reasons could cause the demand curve for loanable funds to shift to the right from DLF to D1LF in the figure?

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