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