Suppose investors become more optimistic that the economy will be doing well over the next decade. How will the market for loanable funds as depicted in the accompanying graph be affected? A) Supply will shift to the right from S₁ to S₂. B) Supply will shift to the left from S₂ to S₁. C) Demand will shift to the right from D₁ to D₂. D) Demand will shift to the left from D₂ to D₁.

Question

Quizplus · Accepted Answer

The Answer of Suppose investors become more optimistic that the economy will be doing well over the next decade. How will the market for loanable funds as depicted in the accompanying graph be affected? A) Supply will shift to the right from S₁ to S₂. B) Supply will shift to the left from S₂ to S₁. C) Demand will shift to the right from D₁ to D₂. D) Demand will shift to the left from D₂ to D₁.

Suppose Investors Become More Optimistic That the Economy Will Be