The graph shown displays the market for loanable funds in an economy. Suppose investors become more optimistic that the economy will do well over the next decade. How will the market for loanable funds be affected?
A) Supply will shift to the right, from S1 to S2
B) Supply will shift to the left, from S2 to S1
C) Demand will shift to the right, from D1 to D2
D) Demand will shift to the left, from D2 to D1

Question

The graph shown displays the market for loanable funds in an economy.  Suppose investors become more optimistic that the economy will do well over the next decade. How will the market for loanable funds be affected?
A) Supply will shift to the right, from S1 to S2 
B) Supply will shift to the left, from S2 to S1 
C) Demand will shift to the right, from D1 to D2 
D) Demand will shift to the left, from D2 to D1

Quizplus · Accepted Answer

The Answer of The graph shown displays the market for loanable funds in an economy.  Suppose investors become more optimistic that the economy will do well over the next decade. How will the market for loanable funds be affected?
A) Supply will shift to the right, from S1 to S2 
B) Supply will shift to the left, from S2 to S1 
C) Demand will shift to the right, from D1 to D2 
D) Demand will shift to the left, from D2 to D1

The Graph Shown Displays the Market for Loanable Funds in an Economy