When ________ changes, the supply of loanable funds curve shifts.
A) the expected rate of profit
B) people's expected future income
C) the price level
D) "animal spirits"
E) investment

Question

Quizplus · Accepted Answer

People's expected future income affects their saving behavior, which in turn influences the supply of loanable funds. If people expect higher future income, they may save less now, reducing the supply of loanable funds, and vice versa.

When ________ Changes, the Supply of Loanable Funds Curve Shifts