Question: The demand for loanable funds will increase if: (a) Low interest rates attract foreign investor (b) investors sell stocks and increase their money holdings (c)
The demand for loanable funds will increase if:
(a) Low interest rates attract foreign investor
(b) investors sell stocks and increase their money holdings
(c) a personal income tax cut increases household saving
(d) net exports increases
(e) government cuts expenditures
What is the answer and can you please provide an explanation on why that is the answer. It appears to me answer could be (d), but course hero expert answer says (b). I don't see why investor selling stocks and increase money holdings increase demand for loanable funds. It increases supply of loanable funds, but not demand
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