If a country experiences a lot of political strife and uncertainty, which leads managers to have a pessimistic outlook, then the _____ loanable funds shifts to the _____.
A)demand for; right
B)supply of; left
C)demand for; left
D)supply of; right

Question

Quizplus · Accepted Answer

Political strife and uncertainty typically lead to reduced investment and borrowing, causing the demand for loanable funds to shift to the left as managers become more pessimistic and less willing to invest.

If a Country Experiences a Lot of Political Strife and Uncertainty