Multiple Choice
What is the effect of a decrease in expected profit?
A) The supply curve of loanable funds shifts rightward and the nominal interest rate rises.
B) The demand curve for loanable funds shifts leftward and the real interest rate falls.
C) The demand curve for loanable funds shifts rightward and the real interest rate rises.
D) The real interest rate rises as saving increases.
E) A movement down along the demand curve for loanable funds occurs.
Correct Answer:
Verified
Correct Answer:
Verified
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