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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 cut investments and borrowing needs, reducing the demand for loanable funds. This causes the demand curve to shift left in financial markets.

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