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The demand curve for funds shifts left if economic growth is ____________?

When the domestic market is stagnant, businesses reduce investments and borrowing needs, causing the demand curve for funds to shift left. Lower economic activity means less demand for loanable funds.... Read More

1 FINANCE MCQS

The demand curve for funds shifts left if economic growth is ____________?

  • The global market is stagnant
  • The global market is not stagnant
  • The domestic market is stagnant
  • The domestic market is not stagnant
Correct Answer: C. The domestic market is stagnant

Detailed Explanation

When the domestic market is stagnant, businesses reduce investments and borrowing needs, causing the demand curve for funds to shift left. Lower economic activity means less demand for loanable funds.

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