In 2008, the financial and housing crisis caused firms to decrease their profit expectations. As a result, there was a ________ in the ________ for loanable funds curve.

Name: In 2008, the financial and housing crisis caused firms to decrease their profit expectations. As a result, there was a ________ in the ________ for loanable funds curve.
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Question

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A leftward shift in the demand for loanable funds curve occurs because firms expect lower profits and thus demand fewer loans for investment.

In 2008, the Financial and Housing Crisis Caused Firms to Decrease