The demand for loanable funds increases if
A)technological growth slows.
B)wealth increases.
C)expected profit increases.
D)firms fear a recession.
E)population growth slows.

Name: The demand for loanable funds increases if A)technological growth slows. B)wealth increases. C)expected profit increases. D)firms fear a recession. E)population growth slows.
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Question

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Expected profit increases lead to more investment opportunities, prompting firms to demand more loanable funds to finance these investments.

The Demand for Loanable Funds Increases If