Which of the following decreases the demand for loanable funds and shifts the demand for loanable funds curve leftward?
A) the real interest rate rises
B) the economy experiences a recession
C) technology that increases productivity is introduced
D) an economy experiences a rapid increase in population
E) wealth decreases

Question

Quizplus · Accepted Answer

During a recession, businesses and consumers are less likely to borrow money for investment and consumption, leading to a decrease in the demand for loanable funds and a leftward shift in the demand curve.

Which of the Following Decreases the Demand for Loanable Funds