Figure 26-3. The figure shows two demand-for-loanable-funds curves and two supply-of-loanable-funds curves.
-Refer to Figure 26-3. A shift of the demand curve from D1 to D2 is called
A) an increase in the demand for loanable funds, and that increase would originate from people who had some extra income they wanted to lend.
B) an increase in the demand for loanable funds, and that increase would originate from households and firms who wish to borrow to make investments.
C) a decrease in the demand for loanable funds, and that decrease would originate from people who had some extra income they wanted to lend.
D) a decrease in the demand for loanable funds, and that decrease would originate from households and firms who wish to borrow to make investments.

Question

Figure 26-3. The figure shows two demand-for-loanable-funds curves and two supply-of-loanable-funds curves. 
-Refer to Figure 26-3. A shift of the demand curve from D1 to D2 is called
A) an increase in the demand for loanable funds, and that increase would originate from people who had some extra income they wanted to lend. 
B) an increase in the demand for loanable funds, and that increase would originate from households and firms who wish to borrow to make investments. 
C) a decrease in the demand for loanable funds, and that decrease would originate from people who had some extra income they wanted to lend. 
D) a decrease in the demand for loanable funds, and that decrease would originate from households and firms who wish to borrow to make investments.

Quizplus · Accepted Answer

A shift of the demand curve from D1 to D2 represents an increase in the demand for loanable funds, and this increase originates from households and firms who wish to borrow to make investments.