An improvement in economic conditions would likely shift the supply curve down and to the right and shift the demand curve for funds up and to the right.

Question

Quizplus · Accepted Answer

An improvement in economic conditions typically leads to increased investment opportunities and higher returns on investment, which would lead to an increase in the supply of funds (shift down and to the right) and an increase in demand for funds (shift up and to the right). As a result, interest rates may also increase.

An Improvement in Economic Conditions Would Likely Shift the Supply