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Author Question: What happens to the demand for loanable funds curve when the economy enters a recession? A) The ... (Read 35 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
Thanks for the timely response, appreciate it

Dominic

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Reply 3 on: Yesterday
Gracias!

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