When people become optimistic about the future and opt to save less, 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

When people become optimistic about the future and opt to save less, the supply of loanable funds shifts to the left. This is because they feel more confident about their future income and are willing to spend more, resulting in a lower supply of loanable funds available for investment.

When People Become Optimistic About the Future and Opt to Save