If a country reaches a new trade agreement that will increase export markets for domestic businesses, 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

An increase in export markets typically leads to higher profits for domestic businesses, which in turn increases their demand for loans to expand operations, thus shifting the demand curve for loanable funds to the right.

If a Country Reaches a New Trade Agreement That Will