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increase in the demand for loanable funds could be best explained by which of the following? (A)
There is a decrease in investment spending. (B) There is an increase in the government's budget
surplus. (C) Firms are optimistic about the future performance of the country's economy. (D)
Domestic investors seek higher returns by investing in foreign financial assets. (E) The economy is
facing political instability.

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  • 1. increase in the demand for loanable funds could be best explained by which of the following? (A) There is a decrease in investment spending. (B) There is an increase in the government's budget surplus. (C) Firms are optimistic about the future performance of the country's economy. (D) Domestic investors seek higher returns by investing in foreign financial assets. (E) The economy is facing political instability.