Question

Which of the following will probably NOT result in an increase in the business demand for loanable funds?

A) an increase in positive net present value (NPV) projects
B) a reduction in interest rates on business loans
C) a recession
D) none of these

Answer 1

I am fairly certain it would be an increase in NPV projects

Step-by-step explanation:

net present value (npv) projects increase potential for profit, meaning the business is making more money and has less need for external financing.