Greater optimism about the expected profits from investment projects
A) shifts the demand for loanable funds curve rightward.
B) shifts the demand for loanable funds curve leftward.
C) causes a movement upward along the demand for loanable funds curve.
D) causes a movement downward along the demand for loanable funds curve.

Question

Quizplus · Accepted Answer

Greater optimism about the expected profits from investment projects increases the desire of businesses to borrow in order to invest in these projects, leading to a rightward shift in the demand for loanable funds curve.

Greater Optimism About the Expected Profits from Investment Projects