Final answer:
An increase in perceived business opportunities typically causes the demand curve for loanable funds to shift to the right, indicating a higher demand for capital.
Step-by-step explanation:
An increase in perceived business opportunities will generally shift the demand curve for loanable funds to the right. This is because businesses will seek more capital to invest in expanding operations or to capitalize on new market chances, which increases the quantity of loans due to higher demand.
More people wanting to borrow means that they are willing to take loans at current rates, or higher ones if necessary, leading to a greater quantity of loanable funds being supplied at every interest rate. Therefore, the effect of an increase in perceived business opportunities is to raise the demand for loanable funds, which can be depicted as a rightward shift of the demand curve.