Asked by Bradley Chappelle on May 03, 2024

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Refer to Figure 26-3. A shift of the demand curve from D1 to D2 is called

A) a decrease in the quantity of loanable funds demanded.
B) an increase in the demand for loanable funds.
C) an increase in the quantity of loanable funds demanded.
D) a decrease in the demand for loanable funds.

Demand-for-loanable-funds

The desire or need for borrowing money, driven by individuals, businesses, or governments, often influenced by interest rates.

Supply-of-loanable-funds

Supply-of-loanable-funds is an economic concept depicting the amount of capital available for borrowing in the financial markets, influenced by savings and the desire of investors to lend money.

Decrease

A reduction in quantity, size, or intensity of a specific variable or condition, often used in economic contexts to describe trends in markets or metrics.

  • Acquire knowledge on the determinants affecting the fluctuations in the supply and demand for loanable funds.
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OO
Osahon OgbomoMay 08, 2024
Final Answer :
B
Explanation :
A shift of the demand curve for loanable funds from one position to another represents a change in the demand itself, not just a change in the quantity demanded. An increase in demand is depicted by a rightward shift of the demand curve.