In 2006,the economy was booming and consumer demand was high,making:
A)the demand for loanable funds increase and shift to the right.
B)the demand for loanable funds decrease and shift to the left.
C)the supply of loanable funds increase and shift to the right.
D)the supply of loanable funds decrease and shift to the left.

Question

Quizplus · Accepted Answer

When the economy is booming and consumer demand is high, businesses and individuals seek to borrow more money to finance expansion and spending. This increases the demand for loanable funds, causing the demand curve to shift to the right.

In 2006,the Economy Was Booming and Consumer Demand Was High,making