If firms are uncertain about future returns and delay busine

If firms are uncertain about future returns and delay business investments O A. the demand for loanable funds will shift leftward B. the supply of loanable funds will shift leftward. O c. the demand for loanable funds will shit rightward. O D. the supply of loanable funds will shift rightward.

Solution

Since firms are uncertain about future return and delay business investment, so it means they will not borrow fund from loanable fund market now.

Hence demand for loanable fund decrease.

So demand for loanable fund shifts leftward.

Hence option A is the correct answer.

Option A; the demand curve of loanable fund shift leftward.