An increase in the confidence that equipment-buying firms have in their future profitability will

Question

Quizplus · Accepted Answer

When equipment-buying firms have an increase in confidence in their future profitability, they are more likely to invest in new equipment or expand their business, which could lead to a higher demand for borrowable money. This is because they may need to borrow money to purchase new equipment or fund their expansion plans. Thus, an increase in confidence would lead to an increase in demand for borrowable money.

An Increase in the Confidence That Equipment-Buying Firms Have in Their