If firms became more optimistic about the future of the economy,which of the following occurs?

Question

Quizplus · Accepted Answer

If firms became more optimistic about the future of the economy, they would be more likely to invest in new projects and expand their businesses, which would increase the demand for loanable funds. Therefore, the demand for loanable funds curve would shift rightward. This would lead to a higher quantity of investment demanded at a higher interest rate.

If Firms Became More Optimistic About the Future of the Economy,which