Asked by
stefanie barbulescu
on Oct 25, 2024
Verified
If firms are uncertain about future returns and delay business investments,
A) the supply of loanable funds will shift rightward.
B) the supply of loanable funds will shift leftward.
C) the demand for loanable funds will shift rightward.
D) the demand for loanable funds will shift leftward.
Future Returns
The potential financial gains or profits that may be received from an investment in the future.
Business Investments
The allocation of resources by businesses into projects or assets with the expectation of generating future profits.
Loanable Funds
This is the money available for borrowing in the financial markets, influenced by interest rates.
- Acknowledge the catalysts for alterations in the supply and demand for loanable funds, and understand their influence on interest rates.
Verified Answer
CM
Learning Objectives
- Acknowledge the catalysts for alterations in the supply and demand for loanable funds, and understand their influence on interest rates.