Multiple Choice
-In the above figure, the demand for loanable funds curve is drawn for the average expected profit. If the real interest rate is constant at 6 percent and the expected profit rises, the amount of loanable funds demanded will be
A) less than $450 billion.
B) $450 billion.
C) between $300 billion and $450 billion.
D) greater than $450 billion.
Correct Answer:

Verified
Correct Answer:
Verified
Q153: In 2007, the interest rate banks in
Q154: Which of the following items are considered
Q155: In the absence of the Ricardo-Barro effect,
Q156: If the nominal interest rate is 8
Q157: When the inflation rate is zero, the<br>A)
Q159: An increase in the _ is an
Q160: Suppose the market for loanable funds is
Q161: People know that the inflation rate will
Q162: The capital stock increases whenever<br>A) gross investment
Q163: The quantity of _ by households will