Economy, asked by Aryatyagi5110, 9 months ago

What would happen to demand of loanable funds in recession?

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Answered by subhadra53
0

Answer:

THE CROWDING-OUT EFFECT. An increase in the government's deficit shifts to demand curve for loanable funds to the right, which leads to a higher interest rate. If the interest rate rises, businesses will cut back on their investment spending. ... The factors that can cause the supply of loanable funds to shift are:1.

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