When consumers and businesses have greater confidence that they will be able to repay in the future, _______________________. The quantity demanded of financial capital at any given interest rate will remain unchanged. The quantity demanded of financial capital at any given interest rate will shift to the left. The quantity demanded of financial capital at any given interest rate will shift to the right. The quantity demanded of financial capital at any given interest rate will achieve equilibrium?

Explanation: Demand for financial capital depends on the rate of interest in the financial market as well as only ability to pay of the borrower. If the borrower is sure that they will be able to successfully repay the loan then they will demand more loans from the financial market.

Therefore, when consumers and businesses have greater confidence that they will be able to repay in the future, they will demand more loans and the the quantity demanded of financial capital at any given interest rate will shift to the right.

dubeyshailja64 dubeyshailja64 · Answer 2 · 2022-02-08T13:58:21+01:00

When consumers and businesses have greater confidence that they will be able to repay in the future, the quantity demanded of financial capital at any given interest rate will shift to the right.

Right shift in quantity demanded:

The quantity demanded of any good shifts to right when there is increase in demand of that good due to non-price factors. Some of these factors are:

Increase in income.
Increase in price of substitute good.
Fall in price of complementary good.

When the consumer or business have confidence over their repayment capacity, they will be ready to accept loans at any interest rate and the demand of loans will rise.

Rise in demand will result demand curve for financial capital shift to right.

Hence the correct option is c.

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