Multiple Choice
Suppose that expected profit decreases. This change means
A) the supply curve for loanable funds shifts rightward and the nominal interest rate rises.
B) there is a movement down along the demand curve for loanable funds.
C) the real interest rate rises as saving increases.
D) the demand curve for loanable funds shifts leftward and the real interest rate falls.
Correct Answer:
Verified
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A)
