Question: When creditors start expecting future inflation, there will be a(n) _____________ shift in the supply curve of loanable funds. Likewise, demanders of funds (borrowers) are

When creditors start expecting future inflation, there will be a(n) _____________ shift in the supply curve of loanable funds. Likewise, demanders of funds

(borrowers) are more anxious to borrow because they think they will pay their loans back in dollars of lesser purchasing power than the dollars they borrowed. Thus, the demand for funds increases.

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