Which one of the following will cause the demand for loanable funds curve to shift leftward?

Question

Quizplus · Accepted Answer

The end of a program that provides investment tax credits would decrease the incentive for firms to invest, leading to a decrease in demand for loanable funds and a leftward shift of the demand for loanable funds curve.

None of the other choices would cause a leftward shift of the demand for loanable funds curve. A) an improvement in firms' expectations about the economy could lead to an increase in investment demand for loanable funds and a rightward shift of the demand for loanable funds curve. B) an increase in demand for new homes would increase demand for mortgage loans, but this would shift the demand for loanable funds along the demand curve, rather than shifting the entire curve. D) An increase in the government deficit would increase the demand for loanable funds and shift the demand curve rightward.

Which One of the Following Will Cause the Demand for Loanable