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Author Question: What happens to the demand for loanable funds curve when the economy enters a recession? A) The ... (Read 22 times)

lilldybug07

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on: Jun 29, 2018
What happens to the demand for loanable funds curve when the economy enters a recession?
 
  A) The demand for loanable funds curve shifts leftward because wealth decreases.
  B) The demand for loanable funds curve shifts leftward because expected profit falls.
  C) The demand for loanable funds curve shifts leftward because the real interest rate falls.
  D) The demand for loanable funds curve shifts rightward because the real interest rate falls.
  E) The demand for loanable funds curve shifts rightward because expected profit falls.

Question 2

To cut inventories, firms produce ________ and real GDP ________, which ________ people's incomes.
 
  A) less; rises; lowers
  B) less; falls; lowers
  C) less; rises; raises
  D) more; falls; lowers
  E) more; rises; raises


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LVPMS

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

B


lilldybug07

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

ashely1112

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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