Studied by 0 people
Looks like no one added any tags here yet for you.
An increase in…expected future profits from new investments
will shift the..demand for loanable funds to the right, causing…the real interest rate and the level of investment to increase
An increase in…corporate taxes
will shift the…demand for loanable funds curve to the left, causing…the real interest rate and the level of investment to decrease
An increase in…the government’s budget deficit
will shift the…supply of loanable funds to the left, causing…the real interest rate to increase and investment to decrease
An increase in…the desire of households to consume today
will shift the…supply for loanable funds curve to the left, causing…the real interest rate to increase and investment to decrease.
An increase in…an increase in tax benefits for saving, such as 401K retirement account, which increase incentive to save
will shift the…supply of loanable funds to the right…causing the real interest rate to decrease and investment to increase
Note 
Flashcard (27)