Suppose the market for loanable funds is in equilibrium. If the expected profit falls, the equilibrium real interest rate and the quantity of loanable funds .
A) falls; increases
B) rises; increases
C) falls; decreases
D) rises; decreases

Question

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The Answer of Suppose the market for loanable funds is in equilibrium. If the expected profit falls, the equilibrium real interest rate and the quantity of loanable funds .
A) falls; increases
B) rises; increases
C) falls; decreases
D) rises; decreases

Suppose the Market for Loanable Funds Is in Equilibrium