when consumers and businesses have greater confidence that they will be able to repay in the future, ___________________.

When consumers and businesses have greater confidence that they will be able to repay in the future, they are more willing to borrow and spend more on goods, services, and investment projects.

In a typical macroeconomics or principles-of-economics fill‑in‑the‑blank question, the completed sentence is usually:

“When consumers and businesses have greater confidence that they will be able to repay in the future, the demand for loans increases.”

This is because:

• Households feel safer taking on installment debt for homes, cars, and durable goods when they are confident about future income and job stability.

• Firms are more likely to finance new investment (machines, buildings, expansion) when business confidence is high, which raises credit demand.

• Higher confidence in repayment lowers perceived risk, so both sides (borrowers and lenders) see more lending and borrowing as reasonable.

So, the most standard textbook-style completion is that loan (or credit) demand rises when repayment confidence is higher.

TL;DR:
When consumers and businesses are more confident they can repay in the future, they borrow and spend more, so the demand for loans increases.

Information gathered from public forums or data available on the internet and portrayed here.