All other things unchanged, an increase in demand for loanable funds would MOST likely be caused by a(n):

Question

Quizplus · Accepted Answer

An increase in government borrowing would increase the demand for loanable funds as the government would need to borrow more money. This would likely lead to an increase in interest rates as the demand for loanable funds increases. A decrease in expected business opportunities, an increase in market interest rates, or an increase in corporate income tax rates would not directly lead to an increase in demand for loanable funds.

All Other Things Unchanged, an Increase in Demand for Loanable