Use the following to answer questions Figure: Loanable Funds Expansion -(Figure: Loanable Funds Expansion)Which of the following reasons could cause the demand curve for loanable funds to shift to the right from D_LFto D¹_LF in the figure? A) The economy is expected to boom,thereby increasing investment returns. B) Larger investment projects with potentially higher returns get funded. C) Falling interest rates make it less expensive for firms to borrow. D) Rising interest rates make it more attractive for savers to save.

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The Answer of Use the following to answer questions Figure: Loanable Funds Expansion -(Figure: Loanable Funds Expansion)Which of the following reasons could cause the demand curve for loanable funds to shift to the right from D_LFto D¹_LF in the figure? A) The economy is expected to boom,thereby increasing investment returns. B) Larger investment projects with potentially higher returns get funded. C) Falling interest rates make it less expensive for firms to borrow. D) Rising interest rates make it more attractive for savers to save.

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