As the economy enters an expansion there will be
A) an increase in the supply of loanable funds.
B) a leftward shift in the supply of loanable funds curve.
C) a decrease in the nominal interest rate.
D) a leftward shift in the demand for loanable funds curve.
E) None of the above answers are correct.

Question

Quizplus · Accepted Answer

As the economy enters an expansion, there is likely to be an increase in savings and investment, which will increase the supply of loanable funds available for borrowing.

As the Economy Enters an Expansion There Will Be