A decrease in the demand for loanable funds would most likely be caused by a(n):

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01-04-2022
Business

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A decrease in the demand for loanable funds would most likely be caused by a(n):

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mboluwape mboluwape · Answer 1 · 2022-04-08T09:07:31+02:00

A decrease in the demand for loanable funds would most likely be caused by a decrease in business opportunities or transactions.

What are loanble funds?

Loanable funds are money or lumbsum available for individual or group of people to loan.

This funds are made available by an economy or an indication to support businesses.

People borrow more when there is good business transaction.

Therefore, A decrease in the demand for loanable funds would most likely be caused by a decrease in business opportunities or transactions

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mahak08 mahak08 · Answer 2 · 2022-05-04T14:09:58+02:00

A drop in demand for loanable cash is most usually due to a drop in business possibilities or transactions.

What factors influence the demand for loanable funds?

The desire for investment is the most important factor driving the demand for loanable cash. The expenditure of funds on the acquisition of new capital goods and inventory is referred to as an investment. The cost of borrowing cash for investment is readily represented by the interest rate.

The loanable funds market describes how this borrowing occurs. Savings provide the source of loanable funds. Borrowing drives the demand for loanable cash. The real interest rate and the amount loaned are determined by the interaction of the supply of savings and the demand for loans.

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