In 2002 mortgage rates fell and mortgage lending increased. Which of the following could explain both of these changes? a. The demand for loanable funds shifted rightward. b. The demand for loanable funds shifted leftward. c. The supply of loanable funds shifted rightward. d. The supply of loanable funds shifted leftward.

Respuesta :

Answer:

The correct answer is letter "A": The demand for loanable funds shifted rightward.

Explanation:

Loanable funds are the total of money people and financial institutions have polled together to be offered to borrowers for investment purposes like the purchase of a house. Mortgage rates decrease typically to promote borrowing from individuals since it makes the payments reachable to sectors with low income. As a direct result, mortgage lending will increase.

ACCESS MORE