The main determinants of the demand for loanable funds are –SELECT A LABELirrationalcapital costscyclical and investor confidence. The latter is a measure of firms’ views about –SELECT A LABELirrationalcapital costscyclical economic activity. Investors often alter their expectations for good reasons, but Keynes also considered –SELECT A LABELirrationalcapital costscyclical waves of pessimism and optimism, which he spoke of as resulting from "animal spirits," as determinants of confidence.

a. irrational
b. capital productivity
c. future
d. past
e. labor costs
f. cyclical