Ask Question
BusinessBusiness
22 July, 12:37

If private investors become less optimistic about the economy, we can expect that demand for loanable funds will increase. supply of loanable funds will increase. demand for loanable funds will decrease. supply of loanable funds will increase and demand for loanable funds will increase. loanable funds will not be impacted by this action.

+2
Answers (1)
  1. 22 July, 15:59
    0
    demand for loanable funds will decrease

    Explanation:

    Loanable funds is the total of all funds that people have saved and deposited in the savings account of commercial banks. This saved funds are in turn lended out to borrowers so as to gain returns (interest) on it.

    When a private investor becomes less optimistic, they would not want to invest their money in loan able funds, therefore the demand for loan able funds will decrease which leads to reduction in the real interest rate.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If private investors become less optimistic about the economy, we can expect that demand for loanable funds will increase. supply of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Interest expense is: Group of answer choices The effective interest rate times the amount of the debt outstanding during the interest period. The stated interest rate times the amount of the debt outstanding during the interest period.
Answers (1)
Who would have standing to bring a civil suit under section 10 (b) ? a. purchaser of shares b. contractor with firm who loses business c. person who refrained from buying because of overly pessimistic information d.
Answers (1)
Suppose you are at a restaurant and your favorite dish costs $20. You are willing to pay up to $17 for your next favorite dish.
Answers (1)
David's gross pay was $450, and his total deductions were $49. What is his net pay? $499 $401 $450 $49
Answers (2)
Rachel receives employer provided health insurance. The employer's cost of the health insurance is $6,800 annually.
Answers (1)
New Questions in Business
Is it legal for south African firms to collude with one another to set prices, provide some evidence in support of your answer
Answers (1)
If berkeley shirtmakers ties compensation directly to output by paying an employee a certain amount for each unit of output produced, it is using
Answers (1)
The dramatic growth in american exports in the last years of the twentieth century was mainly indicative of
Answers (1)
An agreement to settle a debt for less than the sum claimed is referred to as? a.? rescission. b. a satisfaction. c.? an accord. d.? a promisory estoppel.
Answers (1)
In economics, what is logrolling?
Answers (1)
Home » Business » If private investors become less optimistic about the economy, we can expect that demand for loanable funds will increase. supply of loanable funds will increase. demand for loanable funds will decrease.
Sign Up Forgot Password?